Credit Jungle | Jungle Score

Hola Junglers!

If the current Mrs CeeJay had told me we had just thrashed India for the third time in three tests, and scored over 700 runs in the process, then I wouldn’t have believed her – and I trust everything she tells me.  However, according to a survey by Nationwide, it appears that despite 32  per cent of people claiming that trust is the most important thing in a relationship, less than half of us actually share a bank account.

Even more surprising, it appears that one in four people have a secret bank account, which their partner knows nothing about!  I wonder what they use them for, and if they are part of the 32 per cent that claim trust is so important!

What would you do if you found your partner has a few thousand pounds tucked away?  Or are you one of the people that have a secret slush fund?  If so why do you kept it quiet?

Let us know by leaving a comment below.

Kindest Croaks

CeeJay

xx

Hola Junglers!

Now I like my flies fresh and so tend to go shopping on either a daily or even hourly basis.  Over the last few years it appears that many of you have felt the same, abandoning the month end payday shop to buy weekly or even more often.  However, a recent survey by supermarket giant Morrisons suggests that the “big shop” is back with a 52 per cent uplift in household essentials over the last weekend of the month.

Apparently 25 per cent of people have nothing left at all in their fridges come the end of the month and 32 per cent resort to eating “weird combinations” with 19 per cent eating nothing at all until they are paid.

Have your spending patterns changed? Do you eat weird combinations at the end of each month and if so what is the weirdest thing you have eaten?

Anyway, I’m off to throw my hat in the ring for the presidency of the newly formed Frogs International Friendship Association or FIFA as it likes to be called.  I hear the job comes with lots of free flies and other “benefits” as well as a huge salary.

Kindest Croaks

CeeJay

xx

Hola Junglers!

The temperature is rising faster here in the Credit Jungle than in a touchline confrontation between Arsene Wenge and Kenny Dalglish – at least the language is better thanks to the recent installation of a swear box!

Anyway back to business.  A recent report by vouchercodes.co.uk suggests that 19 per cent of us blow nearly all of our wages within 1 week of getting paid.  14 per cent claim they have totally run out of money by the middle of the month and then relyon overdrafts to survive.

Predictably younger people aged between 18 – 24 are the  most likely to go overdrawn, but perhaps surprisingly men are better at budgeting than women, with 24 per cent of men saying they have money left at the end of the month and only 18 per cent of women saying the same.

Is this report accurate?  Do you think men are better than women at budgeting?  Let me know by leaving a comment.

Anyway, I’m off to start preparing for my Royal Wedding party – I look spiffing in a top hat and tails even if David Cameron doesn’t!

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!

Credit Card companies and bankers are about as popular as Ricky Gervais hosting an awards ceremony.  However, there doesn’t appear to be any let up in bankers bonuses and according to Price WaterHouse Coopers (PWC), it would appear that Credit Card Interest Rates look set to increase over the next 3-4 years.

Since interest rates have been frozen to an all time low of 0.5 per cent, the average interest rate on Credit Cards has risen from 14.75 per cent to 16.68 per cent.

The only way for the basic rate of interest to go is up, and although the unsecured lending rates are not linked to this rate, PWC predicts that the new regulations being introduced, forcing banks to hold more cash, will mean credit card companies will inevitably increase rates as well.

This will mean consumers taking a double hit.  A 0.25 per cent increase in the basic rate of interest will add £375 a year to the average mortgage of £150 000.  In addition, the average household currently owes £8000 on credit cards and loans, and if the interest rates were to increase by the 2-3 per cent predicted by PWC, then this would amount to an increased cost of £1800 per year.

This combined with the recent increase on VAT, fuel increasing month on month and the impending increase in National Insurance will mean tough times ahead.

The PWC reports goes on to say this would force people into more short term funding such as payday loans.

These increases are predicted to happen over the next 3-4 years, so if you have a credit card debt then act now to reduce it, so that you dont get caught out.

Right I’m off to move my car as I am about to run out of parking and I don’t want to get toad..

Kindest Croaks

CeeJay

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!

With all this bad weather and everything, please spare a thought for the poor vehicle recovery people who are working round the clock to ensure people get moving.  Funnily enough, I just bumped into one mechanic from the AA and he was crying his eyes out.  Being full of festive cheer and not liking to see anybody too upset I asked what was wrong and if I could help him.  “No its OK” he replied.  “I’m just heading for another break down.”

Anyway, an interesting report has been published by Lloyds TSB, which suggests that the recent credit crunch and recession have made us all a little more financially aware and careful with our money.

According to the report:

• 57 per cent of those asked, said they felt more confident managing their own finances than ever (this included the day to day management of their current accounts)
• 32 per cent of those asked said they felt they had more control over their personal finances than in the past
• 34 per cent said they had not touched their overdraft in the last 12 months

All this suggests that the financial crisis has actually had a positive impact on us all, which is no bad thing.

On the flip side though, Barclays researchers have found that the British people will be spending £50bn on Christmas this year.  This represents an 8 per cent increase on last year!

So quite conflicting information by the sounds of it, leaving me not quite sure who to believe.  The bottom line is only spend what you can afford.  Spend in haste, regret at leisure as Babs the Bad Debt Buffalo is fond of saying.

Right, I’m off  to buy some crackers as I need some more material apparently

Kindest Croaks

CeeJay

xx

Hola Junglers!

So Lord Sugar opted for the experienced Stella over the mono drone Chris in the end.   A reassuringly expensive decision at £100k per year…

Anyway moving on rapidly to other matters of a financial nature.   With all of the talk about personal debt at the moment should people be using credit cards or not?

Well the simple answer is yes and this is why.

• Using a credit card and clearing the balance improves your credit rating, meaning you are more likely to be able to take out a loan for a larger amount in the future should you need to
• When you use your credit card for a purchase of over £100 you are covered by the C0nsumer Credit act should the product or service be faulty
• Some credit cards offer significant interest free periods
• Some credit cards offer loyalty and reward schemes, which can come in handy at Christmas for example

How to use credit cards

• Always try and clear the balance each month so that you do not pay any interest
• If you are not able to clear the balance, set up a direct debit to ensure you do not miss the minimum monthly payment.   In the current climate making just one late payment could cause you a problem when you try and take out a larger loan
• If you are not able to clear the balance, try and pay as much as possible above the minimum payment to avoid paying too much interest
• If you have more than one credit card with an outstanding balance, try and pay more of the card with the highest interest rate first
• If you have credit cards which you no longer use, then cancel them.  These will be seen as open agreements by creditors and will count against you

One final note of caution.  Enjoy Christmas, but don’t over stretch yourself.  It is estimated that over 30 per cent of people who entered into debt management plans or IVAs in March 2009, did so as a result of the previous Christmas!

Right I’m off to finish my Christmas shopping.  I’ve got Lenny the Loan Lion a couple of stocking fillers, but can’t think what to get him for his mane present… 

Kindest Croaks

CeeJay

xx

Hola Junglers!

Banks and bankers are about as popular as baby mice in a bag of Tesco crisps at the moment, because they appear to be refusing to lend.  But who is to blame?  Is it banks refusing to lend or consumers refusing to borrow?

Well according to the Bank of England, there is a big enough demand from consumers but the problem lays squarely at the feet of the banks who are refusing to lend.  The BOE suggests if there was a genuine lack of consumers wanting to borrow, normal market forces would come into play.  i.e the banks would lower their interest rates and relax their policy rules, in order to attract what few borrowers there are.  However, the reverse is true – interest rates are increasing.

However, can the banks really be blamed when they are being pushed by the BOE to pay back their £185 billion loans early?  It could be the BOE are trying to deflect any blame from their own doorstep onto the “poor” lenders.

Whatever the reason though, the level of credit card borrowing is continuing to rise with the punitive interest rates that this entails.  This is presumably because there is virtually no unsecured lending available and the policy rules for secured lending are still very tight.  This all means sadly, that the poor consumer looks set for a rough old ride for at least another 12 months.

Right I’m off to find out what other “special” offers are available at Tesco.  I’m hoping for free flies with my lettuce

Kindest Croaks

CeeJay

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