Credit Jungle | Jungle Score

Hola Junglers!

I have just come back from booking golf lessons for the tadpoles in the hope that in 22 years time at least one of them might make me very proud (and rich) by winning a Major like Rory McIlroy (by the way does anybody else think he looks like Sideshow Bob?).  In the mean time though I guess I’ll have to concentrate on work like everybody else…

A recent survey by the Consumer Credit Counselling Service (CCCS), has a produced a debt map for the UK, showing which areas have the most unsecured debt.

The survey conducted on their clients, showed that people in Shetland have the least amount of debt at an average of £12, 278 per person, while people in Slough have more than double that at £24, 946.

Interestingly nine out of ten of the post codes with the highest amount of debt are in London and the South East, with Crewe being the only area in the North of England with that “honour”, where people have an average of £23, 177 of debt.

Overall people in the South carry more debt, although presumably this is because salaries tend to be higher and therefore they have been able to get more credit.

Do you think this survey is accurate?  Let us know your thoughts below.

Right, I’m off to the carry on opening presents and cards – having so many tadpoles has its perks

Kindest Croaks

CeeJay

xx

Hola Junglers!

There is yet more worrying news this week – and I dont mean that Dannii Minogue might not get the X-Factor role this time round – I mean  that the Council of Mortgage Lenders (CML) has announced that the number of houses repossessed reached 9000 in the first quarter of 2011.

With many people being in a negative equity situation (i.e. their house is worth less than they originally paid for it) or being unable to re-mortgage to pay off debts because of the tightened lending criteria, they are starting to run into financial difficulty.  So if this is the situation you find yourself in what should you do?

Of course an obvious thing is to try and cut back on spending whereever you can, but perhaps more important even then that is to prioritise your debts.  If you find yourself short of cash one month, then the first and most important payment you should make is your mortgage, followed by any other secured loan you might have.  Only once these have been paid should you consider paying your unsecured debts such as credit cards.  This is because your secured creditors (people you owe the money to) have the power to repossess the item you bought with their money, whereas unsecured creditors cannot do this.

Of course unsecured creditors will not simply ignore the fact that you have missed a payment, and will chase you for the late payment.  Whatever you do, do not ignore the calls or letters you may get.  Speak to them and try and agree a new payment plan, and preferably ask them to freeze any interest which might be accumulating.

If the cash flow problem looks like being more permanent than temporary then speak to a debt management professional, who will be be able to advise you of the best option for your particular circumstance.  The worst thing you can do is nothing!

Anyway, I’m off to check my bank account to see if I’ve got my Olympic tickets for the Hop Skip and Jump final.

Kindest Croaks

CeeJay

xx

Hola Junglers!

Some rather surprising news has been released by Credit Action, who have announced that overall debt problems have reduced in the last 12 months.  Almost as surprising as John Terry being given the captain’s armband or Jens Lehman making a return to Arsenal.

Their report does actually give some interesting statistics, which Babs the Bad Debt Buffalo loved wallowing over.  The highlights are:

• In 2010 somebody went through insolvency every 3.7 minutes.  This has now improved to every 4.28 minutes.
• The Citizens Advice Bureau now deals with 8004 debt related problems a day, down from 9500 last year.  (This may be due to the number of offices being closed due to government cuts of course!)
• The number of purchases made using cards is £1, 153, 000, 000 per day
• Banks and building societies are writing off £24.88M of loans every day
• A property is repossessed every 17 minutes
• 337 people per day will be declared insolvent or made bankrupt this year

Despite the positive signs, Bab’s advice is that we are not out of the mud yet by any means.  With the increases in fuel and VAT starting to take affect and many people predicting a rise in interest rates, people who are just keeping their heads above water will find it more and more difficult.  If money is tight at the moment then look at ways you can economise now, before things get even harder for you, and you end up in financial difficulty.

Right, its such a foggy and miserable day here in the Credit Jungle, I’m off for a nice cup of croako

Kindest Croaks

CeeJay

xx

Hola Junglers!

Barclays have conducted some research, which suggests that teenagers and people in their early 20s, don’t give a second thought to getting themselves into debt.  In fact they give it about as much thought as the Swiss referee did in throwing cards at Arsenal players in last nights Champion’s League match with Barcelona.  (They were doomed the second the officials put on white shirts…).

The report says that worryingly one in three teens do not consider using a credit card as spending money, and that 34 per cent of young people regularly run out of money.

In the 22-24 age group, 20 per cent admit to either paying bills late due to lack of available cash, or dipping into an unauthorised overdraft.  The costs associated with using an unauthorised overdraft can be enormous when compared to borrowing money using  a payday loan, so this may go some way to explaining then growth in this market.

For example, if you calculate the interest rate for borrowing £200 with Lloyds TSB using an unauthorised overdraft for 10 days, in the same way you calculate the interest for payday loans, it comes out at over 46 million per cent.  This makes the payday loan rate of about 4000 per cent seem a lot more attractive!

What appears to be lacking with the younger generation is any kind of financial education, or ability to live within a budget.  This is backed up by the report, which says that only 2 per cent of teenagers say they received any kind of financial education at school, with over 90 per cent relying on advice from friends and family.

Right, I hear the French are very fond of Frogs, so I’m off to try and cheer up Arsene Wenger

Kindest Croaks

CeeJay

xx

Hola Junglers!

Not so long ago the prospect of ladies becoming insolvent was about as likely as Derby losing to Crawley or even David Beckham going to Spurs.  However, sad to say times are changing.

The female revolution of the past few decades has seen ladies assume more independence and take more and more control over their finances.  However, this independence combined with the economic boom where credit was easy to come by, has led to a culture of buy now and worry about it later.  Now that the bubble has burst, this has seen a record number of ladies apply for bankruptcy.  In fact 63000 in 2010, or 172 per day.

In the 18-25 age group the number of females is actually much greater than men in the same bracket, with 5000 going bankrupt compared to 3000 guys in the last 12 months.

With estimates of £150M being the amount outstanding on credit cards by February, as a result of Christmas and the pre-vat increase spending rush, (which is clearly not all going to be down to the ladies), it is anticipated that the number of people seeking debt management help will continue to increase this year.

So if you think you might be heading for trouble yourself, whether you are male or female, then act before it’s too late.  Complete our simple application form and a debt management professional will contact you quickly and totally confidentially.

To lighten the mood, I’ll leave you with a little joke involving ladies and frogs…

What do you call a lady with a frog on her head?  Lily of course

Kindest Croaks

Cee Jay

xx

Hola Junglers and a very Happy New Year to all.

I hope like me you have had a restful break.  Mine was only ruined by watching Famous and Fearless, or as we call it in the Jungle “D – List and Desperate!”

Anyway, with the New Year, comes the long awaited VAT increase from 17.5 per cent to 20 per cent.

What the impact of this will be is not clear.  Every “expert” seems to have a different opinion.  The effect on the average family is predicted to be between £389 and £1600 depening on who you believe.  The brewing industry expect it to cost 8800 jobs for their sector and Shadow Chancellor Allan Johnson is predicting 250 000 jobs will go in total.

Chancellor George Osbourne though is hoping it will bring in £13.5bn per year into the treasury, helping to reduce the deficit.  However, consumer associations claim the increase will reduce spending so this will not be achieved.

All in all its very confusing, and we wont really know for a few months at least.  In the mean time just make sure you stick to your budget however large or small it is, to avoid getting into debt.

The question being asked in the Jungle is once this deficit is brought under control, will VAT be reduced again.  I’m not a betting frog, but I know where my money is…

Right, I’m off to eat the last of the minced flies, before I have to try and lose the holiday tummy

Kindest Croaks

CeeJay

xx

Hola Junglers!

Liz Hurley and Shane Warne eh?  Who saw that coming? Other than a News of the World reporter through a telephoto lens of course!

It would appear from a recent Bank of England survey that consumers are starting to feel the pinch, with more than half of 2000 households asked, admitting they are struggling with debt.

50 per cent said they had seen their monthly disposable income reduce over the lat 12 months (presumably brought about by increases in things such as petrol and domestic fuels), and 28 per cent  said their monthly income had fallen by over £100.

18 per cent have therefore either taken a second job, or if possible are working over time to make up the difference; half of the people said they have had to reduce spending in other areas, in order to service their unsecured debts, which have now become a burden.

Over the past few years people have become used to having access to easy credit, and many have “shuffled” credit cards, transferring balances from one to another whenever things became a little tight.  However, this is no longer an option and those that have already done this will be finding it hardest of all to adjust.

If you are finding it increasingly difficult to manage on a month to month basis, then you should consider speaking to a debt management professional.  It costs nothing and is completely confidential.

Right I’m off for a swim before my pond freezes over again!

Kindest Croaks

CeeJay

xx

p.s. The Hurley Bird catches the Warne… I really crack myself up sometimes

Hola Junglers!

An innings and 71 runs and then it rains – sometimes I wished I lived in Australia rather than in the Jungle or at least had one or two Ozzie mates.  Instead I have to make do with chatting to the Credit Score Crew, which is not as much fun as winding up our antipodean cousins of course, but is very interesting and informative.

This morning for example, I had a chat with Babs The Bad Debt Buffalo, who has some interesting news from her friends at Credit Action, who told her that personal debt in the UK has risen to a staggering £1.45tr (yes that’s trillion pounds – and a trillion is 1000 billion!).

This means that the average household debt now stands at £8556 if you exclude mortgages, and increases to £17825, if you base the average on housholds with at lease one unsecured loan.  If you include mortgages then the figure rises to £57 624.

These are clearly alarming numbers, and more and more people are now seeking debt advice, with the banks and building societies writing off £1.83bn of bad debt in the last quarter, £740m of which was credit card debt.

So what should you do if you are getting stuck in the mud of personal debt?  Well the most important thing to do is take action, and do so NOW.

Have a listen to Bab’s podcast and she will give you some useful hints as to what your options might be, but as the best debt management plan for you will depend on your particular set of circumstances, you should speak to a debt management professional.  You can do this by completing our simple form and somebody will call you for a confidential chat.

One thing is certain – the problem will not go away unless you act, and the sooner you act the better you will feel.

Right I’m off now to find a marsupial or two to take the mickey out of!

Kindest Croaks

CeeJay

xx

Hola Junglers!

Gillian Gillian Gillian – bugs and flies are a great source of protein.  Maybe you should try some – it might stop you fainting all the time.  Have you ever seen a frog faint?

Anyway, back to the business of payday lending…

The number of people taking out payday loans has risen by 400% over the last 4 years, with an estimated 1.2 million people now using this as a fairly regular source of funds.

Reports suggest that people who use payday lending will go back  approximately 3.5 times in a year, borrowing a total of £1000 during that period.  So far this year an estimated £1.8 billion has been borrowed from payday lenders and this is set to increase in the lead up to the festive season, which traditionally sees a peak in demand.

So what makes payday lending so attractive , when the APR can be between 1 and 3000 percent?

Well for a start the annual interest rates payday lenders are forced to quote are a little misleading, as most loans are made at 20-40% and are settled within 28 days.  Still not a cheap way of borrowing money, but potentially cheaper than using an unauthorised overdraft, and with a fixed fee which is know in advance, it could be argued it is a better idea than taking out a credit card.

However, the concern must be that if people are needing this type of funding regularly then there is probably a more serious problem hiding below the surface.  The borrowers are either living beyond their means (the majority of borrowers are single and have little in the way of responsibility), or in some cases may have a more serious debt problem.

So if you are in need of a quick cash injection to get you through the Christmas period then a payday loan may well be the answer.  However, only borrow if you are sure you will be able to pay it back in time If you are already struggling to pay bills, then you should consider speaking to a debt management professionl rather than trying to borrow your way out of trouble.

Kindest Croaks

CeeJay

xx

Hi Junglers,

Financial experts have warned consumers of the need to budget their personal finances to ensure that enough money saved is for retirement, avoiding taking out loans in latter years.

Yvonne Goodwin, managing director of Yvonne Goodwin Wealth Management, made this recommendation as people should be thinking about the long-term.

Here at Credit Jungle, we agree with Yvonne’s words but appreciate these things are often easier said than done. Sometimes, having money to save aside the future can seem more like a luxury than a necessity.

Even if it is difficult to think beyond tomorrow in terms of finances, it is always sensible to create yourself a financial safety net in case of redundancy, unemployment or if things take a turn for the worse.

So what are your options now? Well if things have already taken a turn for the worse and you are strapped for cash, a payday loan may be able to help you out in the short term. These loans are generally borrowed for a period of less than 30 days and are repaid when your salary next hits your bank account.

Perhaps, your debt is already spiralled out of control and you need some help in managing it before it seriously damages your credit report. In this instance, debt management may be of help to you.

The good news is, no matter what your circumstances, at Credit Jungle we will be able to help you. Visit our homepage, examine the array of financial products we have on offer, and leave me a message on this post if you’re unsure which product will best suit your requirements.

Let me know!

Kindest Croaks,

CeeJay x

Try and predict your finances