Debt Feature
Debt is having significantly negative effects on the nation’s mental health, a leading charity has revealed. Mental health charity Mind’s recently published study, In the red: debt and mental health, was conducted by the Royal College of Psychiatrists. The study results, which involved an online and postal survey of 1,804 residents in England and Wales, is reportedly the first of its kind to specifically look at the link between mental health problems and debt.
“UK personal debt stands at a staggering £1.4 trillion but the real cost here is that on our mental health,” said Paul Farmer, Mind’s chief executive. “Money worries aren’t just keeping people awake at night; they are causing high levels of stress, depression and in some cases self harm and suicidal thoughts. At a time when people across the country are anxious about their finances, debt-depression is a real and growing concern.”
The research further incorporated qualitative data from 56 people in eight focus groups. Of all the respondents, each of whom were experiencing debt and mental health conditions, 924reported cases of problem debt, which was noted by the research team as meaning being behind in a bill payment for two consecutive payments in the last 12 months.
“Previous studies have simply included reports on people with ‘debt’,” the charity noted in their recent press statement. “Mind’s survey uses a more robust definition of ‘problem debt’. As the credit crunch hits and the cost of living soars, this worrying new evidence shows the extent of debt’s impact, with over 50 per cent of respondents going without food and heating.”
The research team found that 91 per cent of those with problem debt said that debt had worsened their mental health. The team also reported that those with mental health problems are close to three times more likely to be in debt. Often individuals suffering from poor mental health are trying to survive on low-income, and may be unable to work due to stigma.
Additional, worrying data collected by the team indicates that 71 per cent of the respondents studied ran out of money every week or most weeks, that 87 per cent of the respondents rely on credit to pay for food and everyday costs, that 56 per cent had gone without food due to debt, that 51 per cent had gone without heating, and that 92 per cent reported feeling unable to socialise.
Perhaps compounding the staggering statistics, more than 50 per cent of the group studied was living on a weekly household income of less than £200, defined by the government as ‘living on the poverty line’.
“People living with mental health problems are particularly vulnerable to being trapped in a cycle of debt and poverty,” added Farmer. “With many unable to work due to ill health, Mind has found that people are becoming dependent on credit to pay for everyday essentials. Those on lower incomes are also more likely to only be able to get credit from lenders who charge astronomical interest rates. This is a worrying trend as people are left facing a debt mountain that they have no means to repay.”
The study found that many individuals felt “harassed to breaking point,” noting that 83 per cent of those who told creditors about their mental health issues continued to be pressed regarding repayments. The team found that one woman was called every 15 minutes during a 13 hour period. Less than 1 in 3 people with problem debt informed those two whom they were indebted of their mental health problems because they did not feel that they would be understood or even believed (63 per cent and 47 per cent, respectively). A total of 34 per cent of people with problem debt did not seek advice for their debt problems, often because they felt that they had nowhere to turn.
When in a debt consolidation situation, avoid entering into a job search panel. This also means you may have to give up your travel insurance as well as your car insurance. The credit card limit will suffer too.
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Bad Credit Unsecured
It is a know fact that among the borrowers, those with bad credit do struggle a lot while availing loans. in fact the situation gets worse more of the borrower does not wish to pledge any asset as collateral. However now for these set of borrowers, lenders are now offering Bad Credit Unsecured, which is in fact an ideal loan scheme for these sorts of borrowers.
Most of the lenders prefer to check the credit score before approving any financial assistance. it is because your credit score speaks about your credibility. So it would be optimal to pay off some debts which in turn will assist you to improve the credit score. With an improved credit score, availing loans will be quite easy.
These loans are like other conventional loans which can be used for varied number of purposes. You can utilize the amount to satisfy your needs like renovation of home, wedding, purchasing a car, going for a vacation, educational purposes; paying medical bills etc. you can also use the amount to resolve some of your bad credit issues which contributes towards the improvement of your credit score.
To avail this financial scheme, there is no need to pledge any asset as collateral. Instead the amount is advanced on the sole basis of your income and repaying capability. Under this loan scheme, you are entitled to borrow amount in the range of £1000-£25000 for a short reimbursement period of 6months-10 years. The rate of interest levied on this loan option is slightly higher. it is done so as to reduce the risk factor faced by the lenders.
There are scores of lenders present in the financial market who are offering these loans. This is why it becomes a bit difficult to locate the best deals. Well a proper research of the market with the help of online mode will assist you to spot lenders offering competitive rates. Moreover by comparing the quotes, you can easily select a better deal.
Bad credit unsecured is a collateral free loan scheme, which helps you to overcome the financial crisis in spite of your credit status.
Credit Card Beginners Guide
These days anyone can be approved for a credit card regardless of your income, race, sex, background. You just have to be 18 and a U.S Citizen. There is so many easy steps that you should learn and know before getting a credit card.
You probably remember the very first credit card you’ve ever had in your name. You where probably young and went to get a free checking account at your local bank. Your banker mentions the benefits of having a credit card and sells it to you, you sign up for something you didn’t even read about or know about. Well you just got your very first credit card and most people don’t know any of the small print that is tied to the card. So many late fees, high interest rate, annual fees, monthly fees, you name it! Well you just got what you wanted, the free checking account. The bank got what they wanted, for you to have one of their credit cards.
One of the first steps to having a credit card is to actually read fully all the papers you get before you sign. The key things to know is your credit limit which is a given limit on how much you can use on the card. And the interest rate, where the banks make their money in the end. After learning that simple step you can then sign for the credit card.
Step two – Balance your credit card spending. Most people just use their credit card and max it out without subtracting it from their income, the best way to manage your credit card is every time you make a purchase take it off your average weekly check. Following this important step will prevent you from going into major debt and maintaining a good credit score.
Step three – Use your card wisely!! The best way to build your credit card up is to just spend it on normal everyday living expenses right? Yes! This is right and the best way to do it, it is just like buying food with just your regular weekly check as you’ve been doing to survive right? Well Integrate step two into this step and you just taught yourself how to manage your credit card correctly and securely without worrying every month.
If you follow all three steps you will be able to pay your credit card off every month to avoid the fees and interest rates.
Don’t – Use your credit card on garbage things you wouldn’t normally buy such as extra clothes, games, accessories and junk you don’t need. Just use the card for everyday living and you will be fine.
Keeping a Budget
Do you ever wonder where your money goes? That is not good. If you don’t know where your money is going, you are probably spending more than you need to be. When you don’t keep track of your money, you never really know how much you have. If you don’t know that you are broke or going broke, you won’t think twice when you blow a dollar here or there, or 20 dollars here or there.
By keeping a budget, you will always know where your money is going. You will know how much you have spent where and you will hopefully not go broke, as long as you do it right. It sounds like something that will accomplish so much for you will be difficult and tedious. It’s easy to set up a budget, and once you have, it’s not hard or tedious to maintain.
First, you need to figure out your monthly fixed expenses. Gather together all your bills that are always the same. This includes your mortgage or rent, utilities, insurance, credit card payments, car payments, and any others that don’t change. Next, figure out your variable monthly expenses and try to estimate them. These expenses will include gas, food, and anything else that you have to spend money on every month but that is never exactly the same. Try to overestimate these expenses a little to allow for error. Prices are always increasing, so you will have to adjust these expenses over time.
Add up all of your expenses for the month. These should not include what you spend on entertainment and anything extra. Those expenses we will decide later, depending on how much money you have left to spend. Add up your expenses and subtract them from your monthly income. How much money do you have left? If you have a lot, of course that is great, but don’t think that is all fun money. You need to save some. Whether you are saving for vacation, building an emergency fund, college, or retirement, you must save. An emergency fund is a very good idea. It will relieve a lot of stress for you when you know you have backup money for emergency expenses such as medical or car situations, or job loss.
Once you put aside money for bills and general monthly expenses and savings, you can decide how much you can spend on fun and entertainment. First, decide what it is you do for fun, what you really enjoy and what you could do without. If you aren’t sure how much you normally spend, keep track of what you spend your money on for 2 to 4 weeks. Then you will have an idea of how much you need. If you find that you spend more than you have, look where you can cut back. Do you spend $3 or more on coffee every day? That could be costing you up to sixty dollars or more every month. Try making your own for a much cheaper price. Also, stop spending money at vending machines and over priced shops. If you are big shopper, you might find that you really can’t afford to be spending hundreds of dollars on new clothes anymore. If you are way overspending, you will need to go on a money diet.
Once you have decided how much you can spend each month, stick to that plan. Stretch out the money so that you don’t spend it all in the first week. If you save it for the first three weeks, you will have extra money to spend at the end of the month and it can feel like a shopping spree. After cutting back and finding ways to save, you might find that you could cut back your entertainment fund and save even more money for important things.