Time for Debt.

Recent findings which looked at the expenditure of individuals around the UK found some astonishing details about where we commit our hard earned cash. An average UK working person will commit an effective full 17 days of their working year to paying outstanding debts that's about 4.7% of an average persons year in which their work earns them no money. Compare to the figure of which the average person sets aside for savings which is only about two thirds of that amount.

This chart shows visually the amount (approximates) of time dedicated to simply repaying debt, the red section. this is nearly nearly five percent of the average persons time!





red - time spent earning money to pay to debt
orange - time spent earning money
green - personal time
blue - time sleeping

An average saver will accrue some one thousand pounds in savings they put aside from their income, this is shadowed by the fact that an average person would expend about half that again, some one thousand five hundred, on paying debt.

If we compare the amount of our year which we commit to payments in various aspects of our lives we'd spend about 15% of our year working to pay for our rent or mortgage. A huge 24% of our year is committed to putting food on our plates and keeping us comfortable, gas, electrics etc.

So, If you are in debt, and If you consider that your sending some four and a half percent of each year just paying off those debts, consider that by doing all you can to reduce or wipe out your debt you not only get a better quality of financial life but you are as well effectively reclaiming that lost time, time which you spend working to gain no income.

The most simple way to address this and reclaim your wages is to understand where and on what you spend money; form a personal budget, It takes only minutes. check out the free information we offer which covers such things, or get in touch with us if you find yourself frustrated when dealing with such matters we can help, we can take the strain for you.

Some important things to take on board...

• Take some time to work out on what your money gets spent
• Break it down into easy chunks food costs, utitility costs, etc. (click here for a printable basic list)
• If you cant easily build this list, try to remember to keep track in future.

Take control of your money!

Remember, if you need any advice we are here to help you.

Debt Management: UK net debt equivalent to 64.8% of GDP

The ONS reported a current UK budget deficit excluding the temporary effects of financial interventions of £12.4 billion in April 2012. Net borrowing excluding the temporary effects of financial interventions was -£16.5 billion (a surplus) in April 2012.

Net debt excluding the temporary effects of financial interventions was £1006.3 billion, equivalent to 64.8 per cent of GDP. This month's figures include a large one-off transfer to Government of £28 billion, as part of the transfer of the Royal Mail Pension Plan.

Cash Poor

While the impression of debt would suggest a poor household or individual, the facts show that a vast majority of middle class or even more affluent are in just as much trouble as the not so well off. The troubles are different, but they are there. Any household can find itself becoming cash poor, even if as a household they attest to having financial well-being wrapped up in high value assets.

Such is the bane of the middle class in the current financial climate. Job security being a key element, If a previously well off household suddenly see's a drop in the income through redundancy (or even through divorce , loss of a spouse or a company that fails) the likelihood is that the household will shortly find itself in a situation where the payments on bills, credit or other outgoings is no longer being met, and this quickly leads to a much greater level of debt than is seen by poorer households.

It is vital that those that have seen the benefits of an affluent lifestyle over what was previously a period of financial gain look hard at their budgets. Attention needs to be paid to any credit that a household may have, car repayments, mortgage, credit cards (especially cards with high interest). Its best to pay good attention to detail while the going is good. Avoid costly possible future mistakes and a household which is in a comfortable financial position will continue to thrive.

Especially important and currently all over the news; be sure to have saving prepared, currently the population of the UK including the affluent is paying too little attention on financial future. The recession is going to push the public's financial problems higher, and it is vital that we attempt to save for that ever ominous rainy day, It may never come, and let's hope it doesn't. The fact is however, more and more people are realising that they face a financial uncertainty.


more information about cash poor Britain: Click here (Citywire)

Rising Debts, Britons Let Debts Spiral

Figures which were published recently (source: Credit Action) indicate that the public in the UK are still having trouble keeping control of their finances and letting debts spiral upward. As an individual the average Briton faces inflation and recession and this can compound an existing debt problem or a situation where a person was previously 'making ends meet' but now finds their bank balance in the red.

The research carried out by Credit Action revealed that average debt that a household owns not including mortgages, increased for a second time. As an average rising by nearly twenty pounds in March based on a comparison of month by month numbers. While this number seems insignificant the total of this 'average' increase when multiplied by the number of households in the UK puts this increase at close to half a billion pounds.

February originally offered positive news, the numbers showing a decrease in unsecured lending, it didn't have much impact on the rise in personal debt. Figures from previous years showed that personal debt looked like it was successfully being controlled by consumers/individuals in the UK, with figures for debts reducing or at least not showing a worrying upward trend month after month since January 2010.

Now that the UK is in the grip of the double-dip recession once again people are finding that their money simply isn't going as far as it once did. Looking at the overall rise of the half billion pounds, if we then consider the mortgages that many of us have to cope with these, as a collective, have caused an increase of one point two billion pounds ( £1.2b ) together they add to a national rise of one point six billion pounds. All of these fantastical figures mean that the total debt problem for the UK rose to £1.458 trillion in March.

That looks like this...

£1,458,000,000.00

This number can nearly be one for one compare to the entire economic output of the UK last year. The interest alone on this level of debt (albeit shared among all that hold the debt) amounts to an astounding £172 million pounds for every day in March.


The numbers are less baffling if we look at what can be considered the average household rising from just less than sixty-two and a half thousand ( £62,458.00 ) to slightly over sixty-two and a half thousand ( £62,529.00). So at a personal level that's a monthly gain of about seventy pounds ( £73 ).

“Based on figures for the first three months of the year, it certainly seems as if the burden of consumer credit debt has started to increase,” “Whilst debt isn't necessarily a bad thing in itself, it can quickly become a very serious problem if you're unable to pay it back.” “It's absolutely crucial for consumers to be on top of their money, particularly given the fact that we're now in a double-dip recession,” -Michelle Highman, CEO of Credit Action.

If you are faced with mounting debts, If your finances are causing you worry, It's best that you get in touch with someone that can help. Jackson Partners offers free confidential, no obligation advice to help anyone with their own finances. Jackson Partners also offers a full range of personalised debt management options. talk to one of our advisers to see if we can help you.

http://www.jacksonpartners.co.uk/

Monday Morning, Doom & Gloom

Today as I began my meandering trawl through the news sites of the internet at large, I was exhausted by the amount of news stories which had been foretelling of financial recline, monetary woes and all round tales of a Briton about to fold under the pressures an economy in recession.

General statements of falling levels of income ( www.bbc - 7.4% fall of income) or tales of 'growth' problems ( www.bbc.co.uk/ - pay and jobs growth slows ) and its not just the good old BBC that's at it; Reuters, The Independent, The Mail, they all seem to be regurgitating the same rhetoric.

It is a rather annoying fact that we as consumers will have to start watching what we spend more vigilantly, we will have to be more aware of what our income is doing. The fact that the number of Britons which are in serious debt is steadily rising. Over the last few years there has been a shocking rise in financial debt in public sector, personal finance, business, government, every level of the UK economy is finding more and more that it is in negative equity.

And so we find ourselves in the headwaters of what is touted as the double-dip recession. The pound in your pocket seemingly worth less and less as time passes. Every page on Google or Bing is flooded with depressing news and links to how and why you are getting poorer.

Don't let this just wash over you, don't try to simply ignore matters and 'Keep calm and Carry On' It is important to understand and work with your finances, talk to your banking advisor, talk to the Citizens Advice Bureau. Talk to whom ever it takes to be sure that you are clear one what is what when it come to your own money.

We at Jackson Partners can offer independent free advice on any money matters, If your concerned that you might be in any financial trouble talk to someone sooner rather than later, doing so can help prevent problems before they arise, a bad credit score can adversely affect you for much longer than you probably think.

Debt Management and You.

If you've found yourself in a position where your repayments to credit companies is taking up all your available money, perhaps to a point where you are struggling to keep up with essential costs, It could be time to consider a debt management plan (DMP).

A debt management plan is an agreement drawn up between yourself and your creditors which arranges that you shall agree to make certain payments with a view to clearing your debt, this agreement might be in place for several years and you should be aware that you will have to upkeep your promise of payments over that period.

It is possible to draw up this agreement for yourself, or alternatively, use a third party client to arrange the details. Jackson Partners can be that third party intermediary, offering many years of successful debt reduction for many people, Jackson Partners takes pride in itself for its debt management programs.

Having this buffer means that during what can be a very stressful period, in which creditors and debt collection agencies are actively chasing unpaid debts, you have someone else acting in your best interest.

Acting as an intermediary Jackson Partners understand and already have existing relations with crediting companies and have years of experience in dealing with DMPs, As a debt management company Jackson Partners is already in a better position to negotiate with the lender on your behalf.

As a company we do ask for fee’s based on our debt management services, as a customer of Jackson Partners you will find our service to be precise, impartial and confidential. Importantly each plan is personalized to the individual’s needs.

You can approach Jackson Partners for free consultation about debt management with no obligation to enter into our service. Be aware undertaking a DMP becomes a financial responsibility. Failure to upkeep payments could require more substantial debt reduction methods which could include personal bankruptcy, the ramifications of which are substantial.

Debt management plans are not the perfect solution in all cases. Your personal financial situation is the most important indicator of the whether one is right for you. Talk to Jackson Partners today if you need any advice about managing your money.