debtfreeandhappy

Could your gift voucher be an “oucher!”?

2011-12-19T00:51:00.000-08:00

Gift vouchers are always a popular choice at Christmas; especially when you are unsure what to buy the ‘person who has everything’. A voucher so they can get what they want from their favourite retailer?

The website Vouchercodes.com says consumers have accessed 14.3 million vouchers from its site in 2009 year, compared to 9 million in 2008, 2.5 million in 2007 and 35,000 in 2004

Before you rush off to the retailer, consider this…many big name brands have gone into receivership this year alone. Ouch!
This means those customers who bought vouchers may have a hard time getting their money back. Ouch!

It also means that the administrators may change the terms and conditions of the voucher to make it more difficult to use; like, only using on full priced (not sale) items, or having total spend double that of the voucher. Ouch!

You may be smiling if you have been smart enough to use a credit card for the voucher purchase, because you might find some protection under Section 75 of the Consumer Credit Act. However, even if you have paid by credit card The Office of Fair Trading says gift cards and vouchers are normally covered by Section 75; but, when a company goes into administration, he law may apply differently as each administration is different…so you may be in for some pain. Ouch!

Minimise your pain and loss
• Check retailer is solvent before you buy? How? Check for profit warnings and other distress signals in the press. It provides what little comfort there is in these modern times!
• Check with Which? Magazine (or other consumer press) for complaints about delivery…another good indication of a company able to fulfil its promises.
• Also research shows, only half of all vouchers are ever used so consider giving cold hard cash instead. I know it might see a bit thoughtless, but at least you both have the security of knowing it will be safe and will be used.

The Easter Egg Rip-Off - and what you can do about it

2011-04-05T07:20:00.000-07:00

Ok, so we hear in the press that we are in the middle of a recession...people are hurting financially and we are all having to 'tighten our (money) belts'. So why is it that the chocolate companies are hiking up the retail price of Easter Eggs? Is it that we, as a society, buy more comfort food when we are depressed and will buy at any cost, perhaps? :-)

To read the full story, click on this link: The Big Easter Egg Rip-Off

The worst offender is the Galaxy Minstrel Egg, weighing just 324grams, it was £2.50 last year and is now retailing at £6!!!! A 140% rise! Now I know that VAT has gone up...and so has Employers National Insurance (1%) but come on, this has to be a joke...good job it wasn't 1st April otherwise I would have thought it an April Fool prank!

The makers of the egg, MARS Chocolate Company, should be ASHAMED of itself. Now we know how it makes its annual revenue of $30 billion so easily (and it boasts about this on its website)! Mars Company also claim to recruit ethical people...is it really ethical to increase the price

The easiest way to protest is to avoid purchasing any of their products this Easter. If you decided not to purchase any products made by the Mars Company this year, they might think carefully for next year!

The big question is: who is profiting from this; the Mars Company or the high street retailers?

Either way, Easter Eggs this year will make a BIG hole in your pocket, so buy wisely and enjoy the fun! :-)

At Last, Sensible Advice From a Business Man with Success On His Mind...

2009-02-09T18:19:00.000-08:00

Once again I find myself in California as I write this... and oh yes! It is raining! (I bet you didn't expect me to say that, did you? And I have to say - I am surprised too!)

I'm here to research attitudes of smaller business owners amidst the media hype around the current global financial crisis, recession, credit crunch or whatever you wish to call it.

As part of this research, I attended a BNI International Networking event earlier this week - on a sunnier day in San Diego :-). At this event a speaker gave a presentation on marketing a business in the current downturn. Interestingly, she mentioned two companies that grew out of the American Great Depression... Kellogg's and Wrigley's (you know the one... the chewing gum company!). So here is a bit of history for you:

The speaker explained how each of these companies had continued to market during this era and as a result have now become the leading brands.

At the time of the American Great Depression, Post was Kellogg's main competitor (I hadn't even heard of "Post"... until I got back to my condo and noticed that “Post” make my favorite breakfast cereal brand - Shredded Wheat). It seems that Post cut back on their marketing during the Great Depression... whereas Kellogg's did not.

Wrigley's main competitor was Beemans Chewing Gum (Who? Yes... that's what I thought! Apparently they are still selling gum to this day. Pardon my ignorance, but I don’t chew gum and my Google search seemed futile). Again, it appears Mr. Wrigley also continued to market and used the power of the press, and Beemans did not.

What really interested me, as a business woman and business coach, was that at the time consumers hadn’t stopped spending but simply looked for better deals. (This is something that the Press tends to forget to mention, don’t you think?) As a result, the companies providing better deals were the ones that became the market leaders after the depression ended. Why? Well, once spending picked up again, consumers remained loyal to those companies with which they were more familiar.

With all the doom and gloom about the credit crunch and financial crisis, I was DELIGHTED to watch Trusted Places founder Sokratis Papafloratis being interviewed on Sky TV News today. He said it is not all bad and that he gets a perverse sense of pleasure listening to the doom and gloom… a man after my own heart!

He openly admits that the past three years have been tough, however in this current economic climate he is finding it easier to recruit great staff (Recruiting difficulties is very common complaint that I hear frequently from clients on my Executive Coaching Programme).

He also said “If your business is going to be successful it has every chance even now.” And I agree.

This is a time for immense opportunity. A chance to separate the men from the boys (and women from the girls!). A chance to prove yourself in your business or your company. A chance to seek out opportunities in the marketplace – because they are there.

You may have heard how some people get rich on the stock market irrespective of market conditions... The same applies to you in this current climate. You can play victim and give up or you can seek out the opportunities and become the hero. Which path will you choose? (The majority will go for the path of least resistance - Don’t let that be you!)

It’s time to think differently and keep your focus on your business, focus on what you want (not what you DON'T want!) and focus on your goals. Yes, many businesses are struggling in the recession, but others regard it as an opportunity – and I believe that some larger companies are using the "recession" as an opportunitiy to lay off workers. This is, my own humble opinion, of course!

Now is certainly a time for "survival of the fittest". Of course it is going to be tough, but when you know what you want and you focus on that and let go of the distractions of negative attitudes, watching too much “doom and gloom” TV and newspaper reports and instead focus on what you want from your job or your business and ask yourself “Where’s the opportunity in this?” those opportunities will soon show up. I set my business up in the middle of a recession when business people abound were saying how bad things were. I made a healthy profit in my first year because I did NOT buy into the hype. I hope you won’t either. Whether you are employed or self-employ, debtfree or working toward that goal, you do not have to buy into the hype.

A friend of mine contacted me recently as said that her company had started laying people off. I asked her if she felt threatened by this. She said that she didn't but was secretly hoping she would be able to reduce her days from 5 days per week to 4 days per week. I suggested that she keep this in mind and take action to communicate this to her bosses (she pitched it as "doing them a favour") and guess what? She got what she wanted. Will you get what you want? Or are you too focused on what you DONT want, thus attracting that very thing you are afraid of?

For business owners here are some practical tips to apply if you want to thrive in the current climate:

Clear the clutter and rent smaller premises if possible – or better still work from home (it becomes a tax right off too!)

Keep an eye on your budgets – I’ve said this time and again in the DebtFree and Happy Programme, you have to get control of your cash flow. Have budgets in place and chase client payments quickly. If you are employed, work with your employer to bring the cash in more quickly… you’ll be seen as the kind of employee they have to hold onto.

Find cheaper more effective ways to market your business. The internet and email marketing is one way.

Negotiate deals – after all, everything is negotiable. Service providers are offering all sorts of special deals. Suppliers are cutting their revenues.

Until our next encounter....

Power to the People in Debt....

2008-11-05T01:35:00.000-08:00

Yes I’m back! I’ve had hundreds of emails asking me why I’ve been so ‘quiet’ lately. No, I wasn’t abducted by aliens, but I’ve been an Alien…. spending some time in the USA (as a non-American I’m described as an Alien! I just love that phrase). So what exciting things have been happening? Lots! Let me explain …..

I’ve been researching the current policies of the banks and lending institutions. There has been a marked change in policy by the lending institutions in the way that they handle people who cannot afford to repay their debts.

You’ll remember, last year I commented on the new legislation that made it ‘easier’ to declare bankruptcy? Well now it seems that this has resulted in some lending institutions actively ENCOURAGING debtors (those owing money) to do this. In fact, some are even ‘selling’ this idea to those who may not need it if they simply had some help (educated guidance), support (freezing of exorbitant interest rates) and encouragement (‘we’re here to find the right solution for you’ not ‘whatever’s easiest for us (the lending institutions) so we can write the debt off and claim from our own insurance’.

At 5.30am this morning (my favourite reading time) I was reading a copy of “The Vegetarian” and an article on press coverage The Vegetarian Society received after it discovered Masterfoods - owners of Mars chocolate (candy) bars - was changing its production methods and it was not possible for the company to confirm which products were suitable for vegetarians because Mars, Maltesers, Snickers and other popular products were to be made with the use of animal derived rennet.

The article went on to explain how the Vegetarian Society asked its members to complain – SIX THOUSAND of them did so in a single week! That set about a massive press campaign and had even been discussed in Parliament.

Masterfoods reversed its decision within 7 days of the press coverage. That’s the power of our friends in the press.

What does this have to do with Debt Management …. patience please!

That got me thinking about the need for people like you and me to learn more about how institutions are changing their tactics. I truly believe the general public need to know that bankruptcy and IVAs are not the only option. And often it’s not the right option either. Many times I have quoted research, which suggests that the majority of people that get in debt do so again, shortly after getting rid of their original debts. There are exceptions of course.

Many of those that don’t get into debt again, I suspect, do not take out any kind of credit because of the fear of ending up in debt again (certainly this is the feedback I’ve had from clients when they initially contact me). However, this confirms the teachings in my course - that these people have a fear of money… and such fears result in a limited ability to create the kind of money one dreams of.

When I read the article about the Vegetarian Society members collaboration and how they forced the giant to back down, it proved to me that the power is still with the people. What's happening in the USA is the same - I salute Mr Obama's campaign tactics... it's resulted in major change, because the people took action.

You can do the same by complaining to your MP about the lack of education for the average person in debt who does not know where to go for impartial help. Let’s lobby for better education about money management and building ones self esteem, rather than simply forcing someone into bankruptcy and not dealing with the psychology of the self esteem issues that rise when someone loses almost everything. Power to the people!

And to back that up, I've made the decision to reduce the price of our DebtFree & Happy Programme to just £129.00 + VAT (sorry, can't do anything about the VAT), including postage and packing. And, on 1st December, you'll be able to get copies in MP3 downloads, for just £69 +VAT., so keep an eye on the website www.debtfreeandhappy.com

Road To Freedom, by Val M: A story of Debt

2008-06-13T01:01:00.000-07:00

Val M, a colleague and friend of mine wrote this posting. She doesn't have her own blog, so this has been posted here in her own words:

Notes made on 5th June 07 - My beloved husband John only 65 and oh so young for his age. Gone to another world, a new adventure for some one whose whole life had been an adventure. He had died as he’d lived with courage, dignity and a smile. His body wrecked from the ravages of cancer, his mind and spirit finally at peace. What am I left with? A warm and loving family the best of friends a beautiful home lent to me by two of those friends, my health. What I don’t have is money or financial assets - £4.34 in the bank on Sunday.

Now that John has gone there is a hole in my heart the size of an ocean and debts so high they can’t be paid I had given all that I could to care for John. My car had been sold, our savings gone and large credit card debts had been incurred, all in our search for a cure. I had given up my career to care for John full time - 24/7 we were together, something that we learnt to love. What I want now is to use our story to inspire hope and courage in others. Something, also, that helps me make sense of the world that I now live in, A world in which I believe that everything happens for a purpose and that the challenge is to make something positive out of it. There is so much to write so much to share and so much to sort out. I didn’t know where to begin so I started with a diary spurred on by the support of someone whom John and I had met in the last year of his life and my dear friend Amanda whom I had helped (in a small way) put together a programme called DebtFree and Happy a few years ago. Little did I know at that time that the programme was for me.

These postings tell my story. I hope that it helps change not just how you might be feeling about money and debt but also how our financial institutions handle our growing debt mountain. At the moment the prevailing advice is go bankrupt make a fresh start and a new life - certainly it seems that is what a number of my creditors want; why? I really don’t know.

Back in June 07, all I wanted was a break from payment six months to a year whilst I put my life back together. I wrote a note to myself: "Now the stress of it all feels too much, my confidence is shattered and the thought of rebuilding my career a distant dream." Then, in August when I started my diary properly it was a cathartic process; it helped me to get some of my thoughts on paper. I also wanted it to help others. At the time I was incensed by the way some of my creditors were handling my case but I still had some fight in me - Like Amanda, I didn’t want others to go through what I was going through. That is still the case but I was drained and was ready to give up, take the easy option, go bankrupt and start again. I could have easily hopped on an aeroplane and left the country for a few years... making my life easier. But just before I did that… Well here it is I hope it helps: I decided to follow the advice Amanda suggests... I wrote to creditors, including the credit card companies, bank, and council... An admin job I didn't enjoy very much... but one that had to be done. I realised it was much more simple that I thought it would be. (Amanda provides templates to those who have purchased the pack... so just send her an email and you'll receive the templates). I simply adapted it to my situation and put in the various names and addresses.

Bearing in mind the media criticism of the banks handling of such debtors, Amanda and I decided to play a game... we will rate creditors on their ability to respond with respect, dignity and compassion to my situation... and then post our results here on this blog. So watch out for the next instalment when I'll let you know what happened next... (in the meantime, if you are in debt, have you taken the action that Amanda suggests in the free e-course and reiterates in the Debt Free and Happy programme).

Comment from Amanda:

I wish to thank Val for sharing her most intimate thoughts. John was a very special man and a great adventurer. John and I clicked the moment we met. He was full on fun, highly competitive (and I quickly discovered, when Val first introduced me to John at a corporate dinner party, and John and I were on opposite teams!), and he always with a tale or two to tell! He is still very sadly missed. Val is a courageous woman and I feel honoured to have her in my life.

We all have our own journey and story to tell about being in debt. Some, unfortunately, don't have the support mechanism, or the knowledge to eradicate BAD debt from their lives and learn how to make money their friend.

When you read about the next six months of Val's experience, you'll soon see why so many people fall into the trap of filing for bankruptcy when they don't need to or setting up an IVA (Individual Voluntary arrangement) when they could, in fact, have used the exact same money to pay off their debts in full, and have a clean credit history - and usually in less time!

If you had the ability to create £250,000 worth of debt, you are a genius! It means you have the same ability to create £250,000 of wealth. Believe me, I know from my own experience. And when I changed my mindset from that of a victim, and poor person, to that of a wealthy individual, my life turned around.

Val's life was turned upside down when John became ill and every penny (and all the credit) she had available was spent on finding a cure and making the time John had left on this planet a great one. You are at your most vulnerable at this time, just as you are with other life-altering situations, like divorce, relocation etc. It's then that you need the right kind of support (not necessarily sympathy) to get you back on track in more ways that just financial.

I have (and always have had) confidence that Val will turn her situation around again to a life of massive abundance. In the next posting you'll find out how the creditors responded and what Val did about it.

Claim Back Unfair Bank & Other Charges The Easy Way

2007-10-05T04:09:00.000-07:00

It's time to claim back the penalty charges you have received in recent years. In fact, did you know you can claim up to six year?

I'm not just talking about bank charges either. It includes credit cards, store cards, loans, council tax rebates, mortgage accounts - including exit fees! - and mis sold payment protection plans... just to name a few.

No matter what your current financial situation YOU should be doing this. Let's stop these institutions making unfair charges. They are levied on your account for going over agreed limits, however sometimes these costs are excessive and provide the organsiation concerned with "easy" profits, thus unlawful.

There is no reason why every DebtFree&Happy subscriber should not be doing this! Especially when there is an organisation like Bank-Smart that do all the hard work for you.

Bank-Smart deal specifically with the reclaiming of penalty charges on a No Win, No Fee basis with NO upfront charges. They have taken on over £25,000,000 in claims - so why isn't yours included? :-)

Their analysts and programmers have developed one of the most efficient and effective claims management processing systems of any claims management company in the UK.

I've been impressed with the results I've seen my clients get. Have a look at their website by clicking here - there's nothing to lose and everything to gain...with little effort on your part.

Reclaim the money you deserve!

Wishing you great success
Amanda Clarke
DebtFree&Happy Coach

Bank-Smart are regulated by the Ministry of Justice in respect of claims management activities and registered with the Data Controller reference number Z9702452.

Articles Removed from Site

2007-09-20T01:19:00.001-07:00

I've removed some articles from this site due to abuse by other Bloggers. All comments will be checked to ensure they are genuine comments.

I'll republish the comments over the next few months and make a note on when they were first published.

The Articles removed included the following titles:

What does it Mean to Be Debt Free & Happy? First Published June 30, 2006

Christmas is Coming.... Some tips! First Published September 11, 2006

Tories to tame your inner tosser?First Published November 24, 2006
Credit Card Annual Fees on the Increase. First Published March 19, 2007

Apologies to those linking here from other sites.

Are We Being Encouraged to Declare Bankruptcy When in Debt?

2007-09-20T00:49:00.000-07:00

Hello Friends!

Yes I’m back! I’ve had hundreds of emails asking me why I’ve been so ‘quiet’ lately. No, I wasn’t abducted by aliens, but I’ve been an “Alien”…. spending some time in the USA (as a non-American I’m described as an Alien. I just love that phrase!). So what exciting things have been happening? Lots! Let me explain …..

I’ve been researching the current policies of the banks and lending institutions. Recently there has been a marked change in policy by the lending institutions in the way that they handle people who cannot afford to repay their debts.

You’ll remember, last year I commented on the new legislation that made it ‘easier’ to declare bankruptcy? Well now it seems that this has resulted in some lending institutions actively ENCOURAGING debtors (those owing money) to do this! In fact some are even ‘selling’ this idea to those who would not need it if they simply had some help (educated guidance), support (freezing of exorbitant interest rates) and encouragement (with statements like: ‘we’re here to find the right solution for you’ rather than whatever’s easiest for the lending institution because then they can write the debt off and claim from their own insurance).

I was reading a copy of “The Vegetarian” this morning at 5.30am (my favourite reading time) and was drawn to an article about press coverage that The Vegetarian Society received after it discovered Masterfoods - owners of Mars chocolate (candy) bars - was changing its production methods. The company stated that it was not possible to confirm which products were suitable for vegetarians as Mars, Maltesers, Snickers and other popular products were to be made with the use of animal derived rennet.

What does this have to do with Debt Management?…. patience please!

The article went on to explain how the Veg Society asked its’ members to complain – SIX THOUSAND of them did so in a single week! That set about a massive press campaign and had even been discussed in Parliament.

Masterfoods reversed its decision within 7 days of the press coverage. That’s the power of our friends in the press.

That got me thinking about the need for people like you and me who need to know how institutions are changing their tactics regarding debt settlements.

I truly believe the general public need to know that bankruptcy and IVAs are not the only option. And often it’s not the right option either. I’ve often quoted research by Credit Action that suggests that many people who get in debt do so again once they are out of debt. Of those that don’t get into debt again, I suspect many refuse to take out any kind of credit because of the fear of ending up in debt again. This is in fact a fear of money… and such fears result in limited ability to create the kind of money one dreams of. (There are exceptions of course!)

I’m going to take you on a journey over the next few weeks and months so that you start to learn what strategies the lending institutions currently employ. I think you’ll be surprised at what you learn. Then perhaps if thousands of our readers complain about being encouraged to declare bankruptcy then we’ll make progress and help many more people get out of debt through the process of education. This journey is in collaboration with a real life case.
A colleague of mine, Val M, was recently widowed. Val is a vivacious, calm, caring, thoughtful and generous woman in her 50’s. A little on the short side, she makes up for her height with a massive personality. Always immaculately dressed, she is the picture of elegance and sophistication. She describes herself as a fairy godmother and grants wishes to all those she meets. Her husband, John, was Mr Big Personality and the life and soul of any party. He was an adventurer and certainly Val’s Prince Charming. Perfect for the Princess she is!

When John was diagnosed they decided to use all the financial resources they had available to them (i.e. credit cards, selling personal possessions, cars etc) to have the treatment he needed in the hope of a recovery. Unfortunately a recovery was not to be – and sadly John passed away a few months ago.

Val and I discussed her situation shortly after John’s death and I gave her the encouragement and support she needed to deal her creditors.

Through out blog, Val will be sharing her thoughts and experience … and I’ll coach her through the process at the same time.

This is a very challenging situation and currently Val is struggling with some of her creditors. She’ll tell her story in her own words. This case study starts in the next few weeks – so watch out for it in your mail box.

Perhaps by reading this experience, it will encourage you to respond to the posting and give your thoughts and encouragement.

Free Banking May Soon Be A Thing of the Past

2007-02-25T09:42:00.000-08:00

The Office of Fair Trading (OFT) is expected to rule that overdraft charges (currently in the region of £30 a go) are illegal. Banks should not be making a profit out of these charges and most claim that they don't, however the administrative costs of a customer going into the red cannot possibly costs so much (especially in today's hi-tech environment). Those that are currently juggling their debts often end up paying more than one charge per month and bear the brunt of these brutal charges.

The newspaper headlines today suggest banks are already using this ruling to end free banking. However banks make a fair amount of money from this so-called "free" banking. The Sunday Times revealed that banks make £6.5 billion from current accounts - with three quarters of that coming from giving you, the account holder, a ridiculously small rate of interest. Banks use the money you have in your account to lend to others and charge interest on it. By comparison, the Times suggests that only £1.2 billion of this revenue comes from overdraft fees - the conclusion being that the banks can easily absorb the costs of the OFT ruling.

With this in mind, and especially if you are in debt, it is time to start thinking about your personal current account. Ask yourself "Is it time to switch?" It may be time to switch to another bank if you are always receiving excessive charges. Why not join a bank that offers a decent level of interest on current accounts. According to Which? Magazine, Halifax and Abbey, and Alliance & Leicester offer rates above 6% on the balance in the account. First Direct also offer a decent level of interest.

Action:
1. Find out what interest rate you are currently receiving from your bank.
2. If it is not a decent rate of return, carry out a little internet research and discover the best rates (soon the www.debtfreeandhappy.com website will have some of the best providers listed).
3. Switch everything over to your new account. Nowadays, banks take the headache out of switching. No longer do you have to contact each organisation that you have a direct debit with, the bank will do this for you.
4. If you have been subjected to ridiculous bank charges, challenge the bank now that you have your new account open. You can claim back any charges you have paid over the past SIX years. Write to your bank and ask for a list of all the fees it has levied. Got to which.co.uk/bankcharges and find Letter One which is a template letter you can use. BTW, The reason for opening a new account first is because some banks will close down your existing account when they pay out - even though the Financial Ombudsman has ruled against a bank for doing this.
5. Use the interest you gain from your new account to pay off more of your debts. Even if it is just .30p a month, it will start to make a difference in the long run. Also, use ALL the refunds you receive to pay off your existing debts - that way you pay less interest.
6. For FREE template letters on how to write to banks and get your money back go to www.penaltycharges.co.uk or www.which.co.uk/bankcharges

Whilst we can only wait and see what happens to the free current accounts, but be rest assured, I'll keep www.debtfreeandhappy.com Readers posted.

Debt Advisory Companies Are Getting the Huff

2007-01-31T22:58:00.000-08:00

Debt Advisory Companies have been getting the huff recently as their share value has been slashed by as a third. The claim is that UK banks are adopting a blocking approach to the IVA (Independent Voluntary Arrangement).

Debt Advisors have recently had an easy sell to people in debt. Many have been suggesting that the IVA is an alternative to bankruptcy that is less drastic and with fewer stigmas attached to it. It is sold to the borrower as an easier option than bankruptcy where part of the debt is written off if the debtor agrees to a 5-year (or less) payment plan.

What borrowers are not told is that a Personal Insolvency Practitioner (PIP) must oversee an IVA. A PIP, of course, must also be paid. Let me share with you what happened to a subscriber to the debtfreeandhappy.com e-course, before she knew about our website.

She had 45,000 of debt that her PIP would “negotiate” settlement on. She signed a 5-year agreement on the understanding that she would have to produce documentation each year to declare her earnings. She agreed to pay c350 per month. However, if she defaults any any time within the 5 year period then she will have no alternative but to declare bankruptcy. If she increases her earnings then she may have to pay more to her creditors. By the end of the 5 years, she will have paid 21,000 out.

That might seem like a good deal, right? After all, many personal loans are spread over 3-5 years, right?

However, let’s look more carefully. Not only do the above restrictions apply, but unlike taking out a personal loan, she is unable to access any credit at all, including credit cards, mortgage etc.

Again, you might think “Well that would be ok for me. I’m useless with credit cards anyway” or “Well I don’t need a mortgage anyway”. BUT, if you knew (without doubt) you could change the way you think about money and start making money work for you rather than you working for your money, would you want to know more? Of course you would.

And it is possible to change the way you think about money. Credit is meant for those that CAN AFFORD it, not those that can’t afford it. Credit should be used to create more money. A lot can happen in 5 years – just look at house prices in the UK. In 5 years you could go from broke to debt free or even become a millionaire. Just look at the number of millionaires created by the Internet.

Let’s get back to the client – in the agreement (which she never read in full) of the 21,000 the client is paying to her IVA over the 5 year period, 13,900 is paid to the PIP. Leaving just 7,100 to her creditors.

When she realised she was horrified. She thought she was paying back 21,000 to her creditors..(By the way, I’m not saying the PIPs shouldn’t be paid – of course they should! They are offering a service after all. What antagonises me is how the agencies advertise, “Pay off your debts for FREE”. It’s not free. Nothing is free. You’ve probably heard the phrase “There’s no such thing as a free lunch”. Think about it.) OK, I've had my moan now :-)

In order to negotiate a settlement, there is a requirement that 75% of creditors must approve the IVA. Debt advisory companies whine that banks are seemingly blocking IVA’s and are demanding better terms, they also claim that creditors get back between 30-45% of their money. However, the above case study shows that this is not necessarily true. Granted, the debtor may PAY BACK 30-45% of the debt, but that doesn’t go straight to the creditors – remember the PIP must be paid too.

I believe banks and lending institutions have a point. These organisations, particularly banks, have been criticised many times for so called “irresponsible lending”. Now they are taking the lead on that – and quite right.

It is so easy to sign up to an IVA, so the question is: If you sign up for one, will it make ANY difference to your spending habits? The answer for most people is a resounding NO. It won’t make any difference whatsoever. In fact, I have noticed a pattern with most people in chronic debt – no matter how many times they pay the credit cards and bills off in full, no matter how many consolidation loans they get, no matter how many times their relatives bail them out, THEY STILL GET INTO MORE DEBT!!!! In my next posting I will share more on the mindset change required to get out of debt and stay out of debt.

And lending institutions are also recognising this. So now borrowers will need to consider the views of the lending institutions much more in the future. And lending institutions will be taking a much closer look at your status when making decisions and/or even lending money

How to Cut Your Mortgage Term From 9 years to 2 years & 8 months

2007-01-25T10:42:00.000-08:00

I just returned from an extended break and received a message from a graduate of the DebtFree & Happy Personal Learning course. It may be the "most depressing week of the year" for some people, but not for this lady :-)

Here it is:

“Last January on my small mortgage of £50 odd per month I had a term of 8 years 11 months. After paying double the amount for just 12 months I have not only paid off a huge amount, but reduced my term down to 2 years 8 months. I am delighted! If you want copies of my mortgage statements to reflect this, it might be good to share with others who are considering purchasing the Df&H programme. That’s just one of the many nuggets I discovered. My life and attitude towards money has changed dramatically in the past 12 months. Thank you so much.”
M Mackenzie, North Wales.

I’m also delighted for M. She deserves every success. After all, she has used the very tools I gave her. The biggest mistake people make is not taking action based on the information the gain. Many people subscribe to the debtfree and happy e-course but then NEVER action the very useful tips supplied therein. Some even go on to buy the Debt Free & Happy Personal Learning Course and NEVER even OPEN THE BOX! Can you believe that?

If you are one of those people that own a copy of the programme and have yet to open the box, let me ask you one question:

How on earth will you EVER be more successful if you aren’t prepared to take the action required?

It will NEVER happen for you. YOU have to take responsibility. You have to open the box and listen to the programme. You have to carry out the exercises.

“When you are ready, the teacher will appear” Many of us have heard this saying before… however, many people also become blind when the teacher is right in front of them. If you are truly commited to changing your financial future then the time to take action is NOW. It only takes one action to create a wonderful snowball affect that will improve your life endlessly.

The media have been harping on about 22nd January being the Most Depressing Day of the Year, mainly because Credit Card statements with the list of Christmas (over)spending start landing on the doormat. If you start following the principles of the Debt Free & Happy programme, you may even be as delighted as this lady!

Wishing you massive success in 2007.

Clear Your Debts With Tips from Scrooge

2006-12-08T02:32:00.000-08:00

Scrooge went a bit over the top when it comes to saving his hard earned cash. If you are in debt you don't have to copy Scrooge but it might be worthwhile using some of his techniques to help you clear your debt. You can still be generous with your love and affection, just a little less generous with your purse or wallet. It's time to get Thrifty.

The best way for you to get thrifty after Christmas:
a. Return unwanted gifts and replace with things you want
b. Buy next years gift wrap & cards in the New Year and box them up with the Christmas decorations so you can easily find them
c. Use up the food in your freezer.
d. Make your own homemade soups with leftover veggies.
e. Make bubble and squeak from your Christmas leftovers
f. Visit your parents and friends - they'll feed you!
g. Avoid the January sales - it encourages you to spend money you don't have to spend and usually it's the junk noone else wants! It's good marketing that suggests its good. Instead plan your visits to worthwhile sales, like the mid-season sales for items you need.
h. When food shopping - make a shopping list. Don't be tempted to add to it when you are there. Remember stores are laid out to entice you to spend.
i. Avoid ready meals or prepacked foods as these actually cost more. Plan some time to cook in bulk and freeze.

Some tips to get your debts back on track after Christmas:
a. Spend some quiet time reviewing your finances and options.
b. List all your debts, along with interest rates and due payment dates.
c. Clear off the credit card that has the best 0% balance transfer fee and then transfer your other card balances to this. This is a short term option though. Don't see this as the end of the matter. Instead start clearing off your highest interest rate debts first and then clear off the 0% balance.
d. Look at ways you can add extra money to paying off your debts, if you eat out a lot then try making special meals atr home instead, if you buy a takeaway pizza and a DVD rental every friday night, try making your own pizza. This can be great fun with a group of friends. Then use the money saved to pay off your debts.
e. When you have transferred your balance to "X" credit card, cut up "X" credit card to avoid inadvertently spending money on it and thus incurring fees.
f. Sell all the old things you have on ebay or other auction - alternatively have a car boot/garage sale!

Some ways you can cut back on bills:

a. Review your current bills - are you getting the best deal?
b. Being more energy efficient - for example, avoid leaving things on standby like the TV's (including bedroom ones!), computer, lights etc.
c. Turn your heating down by one degree can reduce your bills dramatically.
d. leave all your credit cards at home when you dont need them
e. do your food shopping on the internet - it will reduce the likelihood of spontaneous purchases.f. MAKE A DECISION and just do it!

22nd January is officially known as the most depressing day of the year - Here are some tips to avoid the Blues:

a. Make sure you have something fun planned for the week - something you enjoy doing that doesn't cost anything.

b. Make a list of activities you like doing or would like to do but have never done. Then work out which ones won't break the bank and do it!
c. Plan some fun actitivies - physical activity increases your circulation and "happy hormones" flood the body. Try out any physcial activity that you enjoy and will increase your heartrate. Just a brisk walk might be all you need. Try walking or other physical activities like going to the park with kids - but make sure you wrap up warm though, it's so much more pleasant walking on a cold day when you feel snug and warm! Or try cycling with the family or with friends.
d. Just spending leisure time with family or friends, chatting and having fun. A friend of mine is a knitting expert and organises a Stitch and Bitch session - in otherwords they get together and knit and chat about anything and everything. What's your "stitch and bitch" called?
e. Window shop - without the credit cards to tempt you, leave them at home.
f. Plan some great nights in with friends rather than night's out. Host a "bring a friend" party - that way you'll feel like you are on a night out.
g. Make Sunday a family day and play board games or the new X box game.
h. Why not spend time meditating? It's relaxing and gives you time to focus on your dream life.

More hints/advice for a thrifty start to 2007:

Make some realistic financial goals and review them on a weekly basis - especially whilst paying off your debts, that way you will find yourself more motivated to find ways to rid yourself of the burden by redirecting the money you dont spend to pay off your debts.
Trade in your unwanted gift for a great receipe book and start making some interesting meals that you look forward to eating and take it in for lunch rather than buying lunch at work.
Shop around for cheaper petrol - get to know the cheaper suppliers in your area.
Make a list of consumeables you buy regularly and find the most cost effective supplier in your area.
Look for ways to reduce your costs, how about walking the kids to school rather than driving them? or cycling to work etc
Reduce your mobile phone costs - call your supplier and ask for discounts, often they will oblige. And how about reducing the text messages and calls.
If you have a water meter - avoid running the tap while brushing your teeth.
Buy more efficient appliances. A Grade appliances are best.
Insulate your house - you may even be able to get a grant for that. Draft excluders, Carpet rather than laminate, turn radiators off in rooms you dont use regularly.
Put a brick or a bag of gel in your toilet water tank - this reduces the amount of water rquired to fill the tank up. If you have a toilet with half flush then use it.

Your Attitude Toward Money Impacts On Your Children Too

2006-11-13T01:45:00.000-08:00

I was at the PSA Convention this week. PSA is the Professional Speakers Association. I met up with some of my best friends; successful, inspiring, wonderful people who are keen to help each other to Step Up to the next level! At this conference one of my dear, dear friends, a man I adore a great deal, handed me a book that he has just written and published. It's a book that I believe should be on the bookshelf of every home.

It's called “Things I Have Learnt From My... Father/Son”. Co-written by Paul Bridle and his son David, it's full of quotes, thoughts and feelings to help you learn about your Father or your Son.

A quote from David's learning was "It's not the amount of credit card limit; it's the lack of credit spent that shows true wealth" This shows some great sensible financial teachings Paul has instilled in his son. I would add the word "bad" between "lack of" and "credit"; however the lesson is sound.

Another, more amusing quote is "Don't spend £80 to buy "dirty work worn" jeans. It's cheaper to buy normal jeans and work them in". Ha Ha! Very amusing.

My challenge to you is to examine the thoughts or teachings you are giving or receiving about money and credit. Are you teaching your children the techniques in the above book, or that I write about in the DebtFree & Happy pack or even from The Six Mistakes People in Debt Make E-Course.

What you say about and do with money sets a precedent for your children. Teach them well and you'll give them the very best chance of making the most of life, money and much more.

How Will a 1% Mortgage Interest Rate Affect You?

2006-11-07T02:39:00.000-08:00

Reports in the news this morning that mortgage repossession orders made by courts in England and Wales are at a five-year high, shows yet again the financial strain homeowners are under.
Repossession orders have increased by 22% in a three month period, when compared with the same period in 2005. Although this doesn’t mean that the homes are actually repossessed, it does mean that creditors are making an application for eviction so that they can get their hands on the money owed. Hence the reason you always receive a warning with any mortgage advertisement: “Your home may be repossessed if you do not keep up the payments on it” is required to be state at the bottom of loan adverts.
The Bank of England is expected to raise rates again, possibly as soon as this coming week and some economists are suggesting that the rate will have to rise 6% next year to keep inflation in check.
Time to tighten your belt?
Experts fear the debt situation could get worse.
"The likely increase in interest rates this month, plus the possibility of more monetary tightening in 2007, make it all but certain that the numbers entering the repossession process will increase” says David Stubbs, senior economist at the Royal Institute of Chartered Surveyors.
And that’s just a review of the mortgage situation. Those without a mortgage won’t escape lightly. Credit cards rates will increase too. This will, of course, impact on the lives of many more people.
What do that mean to you?
Every credit card, variable rate loan and variable rate mortgage will increase. Can you sustain a 1% increase?
Check this out:
Melissa lives with her partner Jeff. They don’t have the best credit history so have to pay more for their loans. They have a self certificated mortgage so pay a little more than high street rates. Melissa has a number of debts, which are broken down as follows:
220,000 Joint Variable Rate Mortgage with her partner
60,000 Car Loan at 11.9% £1092.11
15,000 Fixed rate loan, 5 years
13,500 Credit Card A – 15.9% variable Rate
5,400 Credit Card B – 14.75 variable rate

Here is the breakdown of the outgoings and what would happen with a 1% increase. I have listed the Loan Amount Borrowed, the Current Interest Rate, followed by the Min Mthly Payment and a 1% increase and finally the extra amount of money Melissa would to use to pay off her debts each month
Mortgage: 220,000 at 5.6% interest rate is 1380.10 per month. It would rise to 1516.92, thus 136.82 per month would be needed
Car Loan: 60,000 at 11.9% interest rate is 1092.11 per month. It would rise to 1127.03 , thus 34.92 per month would be needed
Loan : 15,000 at 5.6% interest rate is 287.21 per month. It would rise to 294.20 , thus 6.99 per month would be needed
Credit Card A: 13,500 at 15.9% interest rate is 183.46 per month. It would rise to 19.03, thus 10.57 per month would be needed
Credit Card B: 5,400 at 14.75% interest rate is 68.51 per month. It would rise to 72.75 , thus 4.24 per month would be needed.
Total Extra Money that Melissa would need to find with a 1% increase is 193.54

193.54 may or may not seem like a lot. Some readers will recall the early 1990’s when mortgage rates hit 15%. At 12% Melissa & Jeff's mortgage alone would be £2369.99 per month (a rise of £989.89 based on the current mortage rate of 5.5%)
By the way, many people have an “Interest Only” mortgage, which does mean the increase has less impact (for example, Melissa and Jeff’s mortgage would currently be £1026.66 and rise to £1210, which is 183.33 extra per month for just 1% increase)

For a good mortgage calculator go to:
http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml

Educating Yourself About Money Makes You Richer

2006-11-06T08:11:00.000-08:00

If you don't educate yourself about money and how it works, you will never be financially independent or debt free.

Recently I have been contacted by a client who was in a great deal of debt and was struggling to pay her bills.

She had already gone into an IVA (Individual Voluntary Arrangement) by the time she found out about the DebtFree & Happy programme. She was facing bankruptcy because she was struggling to keep up the repayments on the IVA.

She explained to me that she'd started on this slippery slope by agreeing to a debt management plan with a debt management company at the beginning of 2006.

A month after she had signed up for the debt management plan she had received a call from the debt management company representative.
He had said to her "How would you like to reduce your monthly payments further? By say... another £100 or so less per month? And it's all for free."

Obviously she was keen to reduce the payments as much as possible even though she was managing quite well with the new arrangement. So of course, when offered a "free £100 per month" she said "yes (please)". Afterall, she thought that she would have nothing to lose and a lot to gain.

A few months later she had received the paperwork and was told it would result in her saving £100 per month. In her excitement, she simply signed "by the X's" marked on the paperwork, and obediently returned it, without reading the agreement or really understanding the implications.

She then heard about my programme in September, bought the DebtFree & Happy programme and took up some coaching. Just before subscribing to my coaching programme she had been contacted again, but this time by the Insolvency Practitioner and he had asked her how things were going. She wanted to move house, but said that if she did she would find it difficult to repay the IVA. At this point the Insolvency Practitioner said that her only option would be bankruptcy.

When clients join my debt elimination coaching programme they can send me documentation for review (as part of the service), so she sent me her agreement. Upon reading the agreement, it was obvious the arrangement was costing her more than she had realised:

In round figures, her debts were £47,000.
When she signed up for the IVA she thought she had agreed to pay £20,000 back over 5 years, then the rest would be written off.

However, I pointed out that although she would be paying out £20,000 over 5 years, only 7,000 would be going to her creditors. A whooping £13,000 would be paid to her Insolvency Practitioner. Whilst I don't object to Insolvency Practitioners receiving payment for their service, this certainly seems like a lot of money - and far more than my Debt Free & Happy Educational Programme or caoching! :-)

This would mean that for the next 5 years she wouldn't be able to utilise the power of OPM (Other People's Money - well, the official sources that is!). OPM is important to create wealth. She had now put her ability to achieve any financial goals for at least 5 years into jeopardy.

It also means that she was not getting it for "FREE" as she was told. She has to pay for it through her arrangement.

When I explained to my client what the agreement included and what the implications of her actions would be, she was shocked. She could not believe what she had done.

ALWAYS carefully read any documents you are asked to sign - otherwise you might make this costly mistake. Before signing anything, always find out the implications and ask a few different people, not just the advisor who is trying to sell you the plan. Then you can make a sound judgement based on the information you have available. If you believe you have been misled then there are organisations such as the Financial Services Authority that will investigate the matter for you. But make sure you have as much information and facts as possible. Always make notes of any contact you have with advisors, and the dates along with what has been said.

With a little education and know-how you can easily effectively utilise a lot more money, just like this client could have done. You could make agreements with your debtors yourself and as long as you stick to the agreement you'll pay more to your creditors and build up a good credit history too. (By the way, with the DebtFree & Happy pack, you get access to "hidden" pages on my website that includes template letters you can use!)

People believe that when they get into financial difficulty, that they are financially ruined. You are not. In fact, if you have been in debt and managed to make agreements with and pay back money to your creditors then you are considered to be a better risk than someone who has never owned a credit card! :-) So they will be more willing to lend you money in the future for good investments (more on that in part two of the DfH course)

If you pay off your debts quickly you'll then be able to use the money you have available to invest in financially sound opportunities. So you see, educating yourself about money really does makes you richer.

One Pay Day Left Before Christmas

2006-11-01T04:25:00.001-08:00

Can you believe it?
It's 1st November, which means you've probably received your monthly salary payment for October and so you have one more payment due before Christmas arrives.
Have you made your plans on how you will use your cash wisely?
What about making your own Christmas Cake and Christmas puddings this year? This is a great way to connect with your family too.
Why not make your own cards? The recipients will, no doubt, be stunned and your card will certainly stand out from the crowd. You could even do what one of my clients did - she got her kids and their friends to make up lots of little cards, while she made them an evening meal. So it didn't even eat into her own time!
Think about getting lots of little gifts rather than larger gifts. Often we appreciate the small things and provides more of a mystery to the recipient.
Write down your Christmas gift list and stick to it.
Start your shopping now, otherwise if you leave it to the last minute, you'll end up spending more money - guaranteed!
Look after your body this Christmas - rather than overindulging and breaking the bank in the process, buy a small number of additional "treats" rather than filling the cupboards full.
Throw a party and ask guests to bring a bottle and some food! A party is really about the connections you make with the important people in your life, not how much food and alcohol you can provide.
Refer to my previous Christmas Tips posting for more good ideas.
And remember... enjoy the process.

How Easily Money Can Be Sucked Out of Your Pocket: An example

2006-10-23T05:48:00.000-07:00

There are so many ways for financial institutions to suck the money right out of your pocket and leave you deeper in debt. Today, I received a letter from a credit card company stating: "Our records show that the balance on your account exceeds your agreed credit limit. Due to this we believe your current credit limit may be insufficient for your needs. To discuss a credit limit increase please call xxxx." This particular credit card was used to make three purchases this month. I used it because it has a 0% interest rate. I always pay my credit card balances off at the end of each month, unless of course, I can make more money from the money borrowed than the interest charged. However, with this card, I had "taken my eye off the ball" so to speak. I didn't realise the third charge I had made to the card would take me over my credit limited by £248.00 When I used the card to make the payment I (naively) assumed the card would be rejected if there were insufficient funds in the account. Obviously, I was wrong! It had charged my card, hence this letter. I contacted the company concerned to find out how this could have occurred. I took out this credit card because I believed the company had ethical values and I certainly would have thought such a payment would have been refused. The response from the company was:"Because you have such a good credit history we automatically allow payments to go through even if it takes you over the agreed limit." It sounded like they had done me a favour - but that's not the case. 1. I lost my 0% interest rate - so I had to pay the whole balance off in one to avoid interest. Now if I was like some people, and didn't have the cash to pay this debt, I would also have been clobbered with extra interest each month and lost my 0% interest rate. 2. I also received a hefty "over the limit" fee. Some favour eh?In hindsight it is, of course, my own fault for making assumptions. So, some action for you to take: Learn from my mistake! Make sure you stay on top of your credit card transactions so you don't make the mistake I did. The main reason for this is that if you do not have the cash to pay the full balance off, you may end up paying higher rates of interest. It's so easy to get caught out and end up paying hefty fees and interest - ultimately building up more debt than you really want to... or worse, more debt than you can afford.

Debt Consolidation - When it might be right for you

2006-10-18T01:08:00.000-07:00

I’m often asked by Financial advisors if I am “anti-” debt consolidation loans. The answer is simple - No I am not.
What I am opposed to is debt consolidation loans that do not resolve financial issues.
You see, many people will consolidate their loans and simply HOPE that will mean they get out of debt and become debt free forever. As much as that might be a great fairy tale ending, the stark truth is different.

My research shows that most people (89%) who take out a debt consolidation loan end up back in the same situation within a few years.
Nowadays though, some loans are payable over many years - as much as 30 years. That's just like having another mortgage!

Debt Consolidation loans have their place, just like many other credit facilitities. However you should know when they are right and when they are not - so make sure you seek the opinion of more than one advisor. I would recommend talking to at least three, so you get a good objective perspective on things. Also seek advice from the National Debt Line and The Citizens Advice Bureau.

Credit Where Credit is Due - to Barclaycard!

2006-08-29T08:59:00.000-07:00

I was most impressed recently when I was contacted by Barclaycard Fraud Office. I hadn't used my Barclaycard for about six months and decided to use it for a small purchase, followed by two large purchases.
I made one small purchase of £100, followed by a £1000 purchase on the same day (a Friday).
On the following Monday, I made another purchase for £3,000. However, the supplier (based in the USA) contacted me and said the payment had not been authorised. She went on to say that this often happens with UK credit cards because the credit card companies keep a close eye out for any changes in patterns of spending.
She asked me to contact my credit card company. The moment I put the phone down, the phone rang again. It was Barclaycard's Fraud Office investigating the case. They asked me a number of security questions before agreeing to authorise the purchase. They had called me less than 15 minutes after the US company had tried to authorise the payment!

I am extremely impressed with Barclaycard and it just goes to show how effective their systems can be. Well done to them! All too often we hear of people complaining about banks and credit card companies. It's time we gave them credit when credit is due.

Watch Out for the Lastest Fraudster Tactics!

2006-08-29T08:45:00.000-07:00

Have you ever dumped an old PC at a rubbish tip or recycling centre?
Did you make sure you had the hard drives wiped completely clean before doing so? If not, you could be one of the thousands of people at risk having their bank account details sold to fraudsters in Nigeria, according to revelations on a BBC documentary.

Computers which are left at tips or recycling centres are often sent out to Africa for dismantling and/or repair. However, fraudsters in the African country of Nigeria have discovered that many of the computer hard drives have not been completely wiped clean thus still contain personal information about the previous owner – including their bank account details. They then sell this priceless information for JUST £20. And of course, the purchasers know how to make the most of their £20 investment - so beware!

If you are planning to get rid of an old computer, take a few simple precautions: 1. Back up any data you need to keep - a USB is the best option for this. 2. Either remove and destroy the hard drive 3. Alternatively use a specialist who has the software to ensure it is properly wiped. These experts will make sure any floppies or writable disks are also removed. You could always use free downloadable software - just search around on the internet, however I'd rather pay someone a couple of pounds to make sure it's wiped properly.

Consumers Will Feel the Pain with More Fuel Price Increases

2006-08-25T10:33:00.000-07:00

18% rise in household fuel bills! 10% electricity for Powergen customers… When I heard the news, I thought ‘crumbs’.
It made me wonder how those struggling to pay their credit debts and loans now are ever going to be able to absorb these enormous increases.

I’ve yet to compare Powergen’s charges against their competitors and can’t help but wonder if it brings Powergen into line with the other companies - thus switching provider may be futile.

Having said that it's a good time to review your options by carrying out a cost comparison to see if it is worthwhile considering a switch in supplier.

Some authors have criticised this action when I’ve recommended it in the past – because it’s focusing on poverty however, I consider this to be "clever distribution of your finances"… Why pay more than you need to for utilities? Just like petrol – why pay more than you need to? Especially when that extra cash can be re-distributed to pay off your debts. When you are a millionaire, then you won’t need to consider switching!

2006-08-08T10:50:00.000-07:00

Recent news reports suggest Analysts predict that the number of personal insolvencies in England and Wales will exceed 100,000 in 2006 – almost 3 times as many as the 2003 figure.

The blame is pointing firmly to rise in Personal Debt.

Between January and March 2006 there have been 23,000 insolvencies in England and Wales alone. Between April and June there have been an additional 26,000. Almost two thirds declared themselves Bankrupt. The rest took out Individual Voluntary Arrangments (IVA’s).

With Thursday’s decision by the Bank of England to raise interest rates, more consumers will, no doubt, struggle to pay their debts. In addition the increasing energy bills create more pressure for consumers.

There’s no doubt that some lenders (as well as those seeking the credit) may be behaving irresponsibly thus fuelling the debt culture.

Some debt experts have suggested that going bankrupt is an easier option because of the change in law in 2004 that provides protection of the main residence. However, I firmly believe that it is not an easy option at all and results not only in low self-esteem but ongoing difficulties in creating wealth rapidly. A whole new industry around insolvency has grown massively over the past few years. One of the biggest growing companies is centred on Individual Voluntary Arrangements - the alternative to bankruptcy. With the amount of advertising offered, some experts believe this has prompted many more people to take the “easy” insolvency path.

There is a lot of debate on the news on whether or not debt could get out of hand. For many it’s already the case. Until such time that the general population change their thinking and behaviour towards money and adjust their poor spending habits, we will continue to see a rise in insolvencies. If you want to get out of debt quickly and keep your dignity you will need to learn more about your attitude towards money. As the author of the Debtfree&Happy programme and a qualified behavioural coach I suggest you take a moment or two to complete the following statement:

Money is…..(xxxx)

How you respond to this question gives an insight into the way you think about money and your attitudes towards it. It will also identify some conditioned beliefs you may have toward money and abundance.

For example many people respond with “Money is… a pain” or “money is … scarce”. If you think like this, you can be creating unconscious actions and behaviours that result in money being scarce.

If you believe that money is scarce, then of course your actions and behaviours reflect that. He who speaks most of scarcity has it; he who speaks most of prosperity has it. As human beings we learn to get by, either on the income we generate or the credit we can accrue. Just think about the last time you received a pay rise. Are you now so used to that money that you don’t know how you coped without it? Most people would answer positively to that question. So you have learned to live off that new income. So you still “have no money” (in other words, spare cash). If you want to be truly wealthy, you must learn to speak only of prosperity and to take consistent action to eliminate bad debt from your life and generate multiple streams of income. That’s what living a DebtFree and happy life is all about.

Scottish Widows Announce Fewer Are Saving For Retirement

2006-06-27T06:21:00.000-07:00

Figures from Scottish Widows, announced today suggest that the percentage of people making adequate savings for a pension fell to 46% last year (falling from 55%)

In the same report they state that the number of people failing to even have a pension in place rose from 17 % to 28%.
*Based on a survey of 5,806 people.

In talking to my clients I have found that many people are seeking alternative investments to the pension scheme. The main reasons appear to be the fears following previous stockmarket crashes, not understanding how pensions work (most people seem to have the perception that pensions are very complicated), and concerns about fraud due to the fraud cases that reach the headlines.

Of course, it's good to avoid having all your eggs in one basket, but why not make at least one of the "eggs" a simple pension scheme with a reputable provider?