Welcome to Personal Finance Growth - Blogging about personal finance, savings and being frugal
I think kids should get told to manage their money as money is an important part in people lives as they use it for anything they need. It would be better for people to stay out of debt and have a comfy life rather than get into debt and be paying them off for a majority of your life.
It would be a good idea to have some sort of lesson when kids get taught about how to handle their money and how to budget for when they have their own houses and flats. you should tell them about situations where others have been in debt and where things have gone wrong which would make them think they don’t want that happening to them.
It would be helpful if kids new more about debt also, because i didn’t really know about managing my money which gets me not having any til i next get paid. so it would be a good idea for kids to learn more before they have to do this kinda stuff to.
A home improvement loan, will only be of benefit if the improvement you are making will actually add value to your property, in some cases the home improvement may have the opposite effect and cause your home to depreciate in value.
For example if you are taking out a home improvement loan to extend your home, to replace a tired and jaded kitchen, or to convert the loft area, then you are probably on to a winner. These type of improvements, as a rule, will add value to your property. However if you are taking out a home improvement loan to build yourself a swimming pool, it will not increase the value and may actually cause the property to go down in value, as prospective buyers may be put off by the upkeep of a pool and the fact that with the British weather they may not get much use from it.
If you are taking out a home improvement loan with the intention of staying at the property for many years, and are improving it for your own use, then yes they are a good idea.
If on the other hand you are attempting to improve the property with a view to selling it in the near future, then you need to think very carefully about the improvements you are going to make so that it will add value, rather than take it away.
Depending upon the improvements that you’re making to your property, you may be able to save money on your utility bills, as making your home energy efficient will save you money over the long term.
Student loans are a good thing if you have no hope of finding the money to fund your education otherwise. I personally took out student loans to provide me the opportunity to study at university. Was it worth it? This all depends on the individual.
Before student loans were introduced student were given grants which would cover the costs incurred during further education. However, with more and more people seeking u university education, this was not sustainable and the government introduced fees and reduced grants.
One advantage is that this made students a lot cannier about money. For example, many of them were leaving university and immediately declaring bankruptcy or taking out an IVA to avoid paying their student debts. This is a loophole which is now legally closed.
In summary student loans in general are a bad thing. It simply suggests that not enough money is being put into institutions to afford the excess number of students today. Why should someone become burdened with debt simply to further their understanding in the world or a particular topic? Barbaric and outdated.
I think the first most important step to take is to accept that you have a problem and not bury your head in the sand and hope that it will go away. You need to gather all your information together into one place and see how bad the situation is. You then need to do a statement of affairs setting out all your income and then all your necessary expenditure not forgetting anything. You will then see how much you have left to actually pay off your debts with.
The next step is to contact your debtors and inform them that you have a problem and see if they can help you in any way either short-term or longer. If you feel that you need more help than this then there are non-fee paying companies to help you such as CCCS or Payplan. They do not judge you and will act on your behalf when contacting the companies you owe money to. Most importantly admit that you have a problem.
In today’s society debt is on the increase. If you have reached a point where you are struggling to make your money stretch and are having to miss some monthly loan or credit repayments just to stay afloat, then it is vital you seek out someone who can help you.
If you choose to ignore your current problems then your debt WILL begin to spiral out of control; as the logic follows that if you are skipping repayments now then you will continue to do so and your problem will only get worse.
Depending on the size of your debts, you may want to speak to your friends or family members first to see if they can help you. Other alternatives are to speak to a representative at your local Citizens Advice Bureau who will be able to point you in the direction of the best place to seek advice for your debt. Alternatively, there are many debt advice companies that offer free advice and will assist you in negotiating new repayment terms with your creditors.
Essentially, the bottom line is that if you are struggling to meet your repayments now, then you will continue to struggle to meet your future monthly repayments. Before your debts get out of hand it is vital to seek professional advice to stop your debts getting out of control.
Mounting debt is a huge worry and it can soon spiral out of control if you are not careful. The odd missed payment could soon turn into one of many; there may not be enough money going into the bank account each month to cover debts like loans, credit cards and worse: the mortgage either. When you are getting more sleepless nights than peaceful ones, you know that it’s time to sort those finances out and it can be tempting to seek help from one of the many advice websites on the Internet.
Be warned, however, many of these companies might promise that they can get your debts written off for you, but they do actually charge for their services and you may find yourself taking them on as simply another creditor, which you can do without.
The Citizen’s Advice Bureau, however, offers free debt advice.
For small debt problems, teach yourself to budget and whittle down that debt by yourself. For the more serious debt problems, go to the Citizen’s Advice Bureau and let them help you help yourself for no cost at all.
The best advice that can be given to anybody in trouble with debt is to consider ‘debt management’, ideally with a recognised body such as the Consumer Credit Counselling Service (CCCS) rather than small company which may advertise on TV and is usually only interested in profiteering. This comment however, will discuss the comparison between the two options above.
IVA or bankruptcy? An IVA is a great alternative to bankruptcy, not just for the indebted individual involved, but also or the majority of creditors, who in general receive more than they would from bankruptcy proceedings.
Think hard about the implications of bankruptcy. Besides the stigma that is avoided by not having a bankruptcy order on your credit file for the next six years, making it nigh on impossible to obtain a bank account, there is also an element of privacy to an IVA that is not otherwise afforded. An IVA is not advertised in the local paper, leaving no threat from an observant mother-in-law or line manager.
Although a debtor’s credit file will likely be about the same in terms of a rating, obtaining credit isn’t legally off limits as it is during a bankruptcy, and there are even mortgage lenders who will lend to applicants with satisfactorily conducted IVAs from day one.
The main advantage however, the one which allows consumers to avoid a lot of heartache, is the law with regards to the debtor’s property. Whereas in bankruptcy all assets are turned over to the trustee, an IVA allows you to settle debts without the threat of a forced house sale, meaning there is no need to move and release any equity in one’s property.
As mentioned with debt management, getting debt help by speaking to a professional is the most important first step, and avoiding companies that may make matters worse is paramount. Along with cutting up the credit cards!
Rule one and the most important rule of all with growing debts is confront them, concede that you need to do something about them and wherever possible stop them from growing any bigger. Keep together all the letters and statements you receive from your creditors and get together a list of all those to whom you owe money and how much.
From this point you can prioritise those which need to be paid. These are the most essential; your mortgage or rent, fuel costs, any outstanding court fines or money to a partner for child maintenance. Keep up with these payments to prevent your debts damaging your life, to prevent you losing your home or having fuel cut off.
Non-priority debts are all the others; credit cards, overdrafts, student loans and benefit overpayments. You then need to sort out your budget, any money left after essential expenditures (essential are only those things that are necessary to live – rent or mortgage, food bills, household costs etc.) After this you will know how much you have left to pay off your priority debts, if it isn’t enough show it to your creditors, attempt to come to an agreement. If you have more than you need, arrange to pay more off each month until these priority debts are cleared. Your non-priority debts can be dealt with in much the same way, if you have money to spare you can begin to pay these off simultaneously with your priority debts. You can apply for an administration order or for an IVA.
If you have no money left after considering your budget there are very few options, either applying for bankruptcy or asking your creditors to write off the debt. Whatever you do, debts will not go away they will merely get worse, the most important step is confronting them and starting to work towards a solution and a debt free life.
Today, we find ourselves in an ever deteriorating economic climate. This means that many more people are struggling to meet payments and in turn have large amounts of debt to contend with. Luckily, there are means in which these problems can be eased.
One method is an Individual Voluntary Arrangement (IVA). An IVA is a legally binding contract between you and your creditors which aims to reduce the amount of money you have to repay. You will find that it is a good way to stop any further interest charges and to reduce your monthly payments. Consequently, you will have more money in your pocket at the end of the month in which to spend on other things.
Although IVA’s are an excellent solution for some, they are not always the best for everybody. Therefore, there are criteria which you must meet to be eligible:
• The debt is over £15,000.
• The debt is owed to three or more different creditors.
• You have figured out a sensible, realistic budget that you will be able to stick to in order to make my payments, allowing enough to pay for everyday basic needs, bills and general living costs.
• You are in regular employment with a steady income.
If you do not meet the above criteria then it is likely that an IVA is not the ideal solution for your debt problems. Even for people who do meet the above criteria, it is always advisable that you arrange a meeting with a debt advisor first as they will be able to inform you more about an IVA and any other available options. So there you have it, ‘what is an IVA’ in a nutshell.
Pocket money is a valuable tool in teaching your children the value of money and can also be used as a way of controlling them. Children gain an interest in money from a very early age as they know that’s what they need to get sweets, lollipops and toys. So when should you start giving your child pocket money?
Most people start to give their children pocket money from the age of six or seven, at this age the amount does not have to be very much say £1 to £2 per week, as age increases so should the amount as the things they’ll want to buy will be more expensive and inflation will mean our money is worth less.
Pocket money should always be dependent on good behaviour! Bad children should not be paid or should be reminded that if they don’t behave they’ll lose their money. This will teach them a lesson they won’t forget as they won’t be able to join their friends in the tuck shop. A great way of keeping them in check is to start the week at pocket money of £5 and for every time they miss behave or don’t do their chores you can subtract £1, so they may get lots of money or get nothing.
An awesome way of teaching children the value of money and get them saving early is to give them a small weekly amount of about £2.50 and tell them if they save it for 4 weeks and not spend any of it you’ll give them interest making their £10 into £15 (very good interest rate). This will give your child a valuable lesson in saving money and thinking about the future.
If you have any techniques of your own or tips on giving pocket money then please share them with everyone.