DebtBytes UK - Bankruptcy, Insolvency, Simple IVA & Bank Charges News UK http://myvesta.org.uk/blog/export.xml UK IVA and bankruptcy focused insolvency advice column for people that are dealing with problem debt, money troubles or falling behind on the bills. This advice column will provide you with information you can use. For more information visit Myvesta UK at Myvesta.org.uk.

en-us http://backend.userland.com/rss Your Friends @ Myvesta.org.uk (stever@myvesta.org) myvestaukblog_archive.html Two Sides to Every Coin stever@myvesta.org 112454086147101036 We often think about how fast or large consumer debt is growing as a bad thing but we can’t forget that to creditors the goal is to grow consumer debt to maximise profits.

A recent article in Forbes is a perfect example of another point-of-view when increasing consumer debt is exciting news.

If you get a moment read “DATAWATCH UK consumer slowdown fears eased by July retail sales upside surprise”.

]]> 12:26 PM Your Friends @ Myvesta.org.uk Your Friends @ Myvesta.org.uk 2005_08_14_myvestaukblog_archive.html#112454086147101036 20 August 2005 20 August 2005 Baby, I Love My Credit Card More Than You stever@myvesta.org 112440839124978056 Our love of the credit card in the UK continues to rise, at least as measured by usage and debt.

According to the group Datamonitor, the combined value of all transactions made on credit, debit, charge and store cards was 436 billion pounds in 2004, 11 percent higher than in 2003.

And when you look at the levels of debt that we carry these days it is very possible that UK consumers could double, yes double, the amount of debt they carry within ten years.

These are the times that we all need to exercise financial caution. With employment rates slipping and the housing market starting to cool off, those things we’ve learned to depend on, jobs and equity, could disappear unexpectedly.

I certainly don’t want you to feel like the sky Is falling, the world is not going to end tomorrow. But it would be healthy if we simply looked at our personal financial situation before we bought the next big ticket item and asked ourselves just one question, “Do I really need this”.

In reality the economy is cyclical and while times might become tougher and some will suffer, we will survive, but it might just be differently than we planned for or expected.
]]> 11:37 PM Your Friends @ Myvesta.org.uk Your Friends @ Myvesta.org.uk 2005_08_14_myvestaukblog_archive.html#112440839124978056 18 August 2005 18 August 2005 Satisfaction With Life - Happiness stever@myvesta.org 112433464968856978 If you are at all interested in the factors that led people to overspend then I suggest that you spend some time curled up with the Financial Services Authority paper by The Henley Centre titled “Towards Understanding Consumers’ Needs”.

The paper revels that more of the spending in the UK is targeted towards lifestyle and fun purchases rather than needs. It is forecast that by 2010; nearly 75 per cent of spending will be on the lifestyle and fun items.

Time and time again study’s like this one have shown that an increase in income and disposable wealth do not increase our satisfaction with life or our happiness. This work shares that very same message again.

I love the fact that the paper presents the underlying issues why people get into financial trouble and even shows you Maslow’s Hierarchy of Needs, a key force in consumer debt. Maslow’s work is a critical tool in understanding the underlying motives that get people into financial trouble.

A key point in the paper seems right on target. It states that rather than life becoming less financially uncertain, it will become more so because as life becomes more complicated, the risks increase as well. The nasty shift from things that used to be labelled as nice to have items is rapidly shifting to must have items, especially in the travel/leisure categories. More mandatory discretionary items simple means more debt for many.

If you enjoy research like this, you will be very interested in the polarity of findings. The work presents points of view of people from hedonists to calculating planners. This work is very enlightening and worth investing the time in reading all 114 pages.
]]> 3:09 AM Your Friends @ Myvesta.org.uk Your Friends @ Myvesta.org.uk 2005_08_14_myvestaukblog_archive.html#112433464968856978 Work ‘till Death stever@myvesta.org 112433457366919719 A new study in America has found that more Americans expect to work ‘till death. CNN Money published an article today that shows some alarming trends that can and will impact every major economy where credit and debt are rising, including the UK.

Twelve per cent of people feel they won’t be able to retire at all. This is an increase of 171 per cent since 2000 in the number of people that feel that retire is out of the grasp completely.

In 2000 42 per cent of workers felt they would work part-time and pursue other interests. Today that number has fallen to only 27 per cent of workers that feel they will be able to reduce working hours.
]]> 3:08 AM Your Friends @ Myvesta.org.uk Your Friends @ Myvesta.org.uk 2005_08_14_myvestaukblog_archive.html#112433457366919719 17 August 2005 17 August 2005 Financial Pressures Continue to Mount stever@myvesta.org 112418422615023521 Just when you thought things couldn’t get any tighter in the household budget, they do. There was a wonderful article recently that uncovered the hidden rise in household bills. According to the article, during 2004 while inflation rose only 1.1%, council taxes rose by a whopping 11%. The cost of running a home rose by 5% during the same period.

The bad news is that recent increases in the UK consumer price inflation to 2.3% in July this year, the highest level since records began, fuelling worries that the economy does not need to be warmed up by reducing interest rates. The figure was in line with the Bank of England’s monetary policy committee. I guess that’s good news for the prognosticators.
]]> 9:22 AM Your Friends @ Myvesta.org.uk Your Friends @ Myvesta.org.uk 2005_08_14_myvestaukblog_archive.html#112418422615023521 16 August 2005 16 August 2005 Don’t Let Debt Get You Down stever@myvesta.org 112406620190997631 Great article in the Sunday Times today on students and debt. With UK students starting out with an average student loan debt of £13,500, it is no wonder why it is easy for graduates to not be able to work in their fields.

Students just out of university are just at the beginning of their professional lives. This is often the time when entry level jobs in their desired fields are offering experience without much financial reward. However, student loan repayments can create a financial monster on the students back and cause them to have to forgo a great entry level job in order to feed the loan.

The article also contains some very good eye opening financial facts for students. For more information about student bank overdraft charges as high as 29.8 per cent and fee-free student issued credit cards, be sure to read the Sunday Times article. Two good resources on student debt are milkround and Student Finance Direct.
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