Blowin Cheese

One of the reasons which could have led to the current crunch in the economy is irresponsible lending. Lenders who haven't thoroughly looked over the person's budget sheet could have contributed to the problem. However it could also be down to the person who is looking to borrow money, said the Money Advice Trust.

Some lenders have been known to offer eight times a salary, as property was so expensive that they had to. This would have resulted in the customer having a huge mortgage, which they would have struggled to pay back. They see this scenario as being just one of the reasons why the economy has taken a hit - one of many.

The British public racked up £5.3bn in credit card debt paying for goods in DIY shops over the last year. Apacs revealed figures that show over 4 million transactions involving credit cards taking place in DIY stores each week. In the past year, the flexible friend accounted for over £11bn worth of sales in the DIY market – debit cards being responsible for £6.7bn of this.

It has also been found that customers are more likely to spend more if they choose to pay by credit card.

Approximately 21% of people would rather turn to their parents for advice than a debt professional. According to N&P, 74% of people would go to amechanice to talk about cars, but only 59% would seek debt advice from a financial advisor.

57% of respondents thought about financial issues more often now than a year ago before the onset of the credit crunch.

It seems students aren't behaving like their stereotypes. They are generally looking after their rented homes, as they wish to avoid incurring more debt.

Paragon Mortgages said that they actually make good tenants and instead of being destructive, they usually care for their property to avoid losing deposits and being charged for damage. Research by them found that 81% of student landlords classed their tenants as punctual rental payers while 90% thought they were well-behaved during their tenancy.

A recent study by Halifax found that the average student spends almost £75 a week on accomodation and £40 a week on food.

The Unions have warned the government that for many elderly people this winter, they will have to choose between eating and heating. Some elderly people will need to make this choice due to soaring energy prices. Although they do receive winter fuel payments, the impact of these is less and less as prices continue to sky rocket.

• Make an attempt at creating a Statement of Affairs, i.e. a list of every one of your bills and debts, as well as your income.
  
• Post, anonymously, on a forum or board, such as this one. Many debt experts, debtors and former debtors will be able to give sound advice on how to tackle them, and just how bad your situation is.
  
• Prepare a budget. A realistic one.
  
• Review your bank balance and debt balances at the end of the month, and compare it with the Statement of Affairs. Have a look at what went wrong and how you can fix it.
  
• Track all your spending. Keep a spending diary of everything you spend. The little things really do add up.
  
• Discuss your problems. Talking to your partner, friends and family can really help and hopefully give you extra support to get you through
• Take a look at this board too which has planty of moeny saving tips.
  
• If none of this works, look over the discussion boards for more advice, or give one of these a call:
  • National Debtline
  • Citizens Advice
  • Consumer Credit Counselling Service
    

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