Posts Tagged ‘recession’

Women Worst Hit By Recession

Wednesday, December 8th, 2010

 Women are being hit the hardest by Britain’s economic meltdown, figures have revealed.

The number being plunged into insolvency in just one year has soared to an all-time record of nearly 65,000, a staggering 175 a day.

The study conducted by the Government’s Insolvency Service discovered that women are being hit almost 3 times harder by the recession than their male counterparts.

Female insolvency figures rose by a huge 22% compared to figures from last year. In comparison, the insolvency figure for males rose by 8%. This goes to show that females are much more affected by the economic downturn than men are at the present date.

Financial experts have concluded that the most prominent reason for this stark difference in figures is that women are attempting to maintain a celebrity lifestyle despite the credit crisis and the poor economic state at the moment.

Some extreme cases that experts have seen are women who try to emulate the popular ‘WAG’ lifestyle by living way beyond their means. These women spend vast amounts of money on credit cards, store cards and even take out personal loans to fund their lavish lifestyles, leaving many in financial dire straits.

People who are classed as being in ‘extreme debt’ have a debt-to-income ratio of more than 66:1. This means that effectively, individuals are spending more than 66 times their annual salary every year.

Records show that there are 64,035 insolvent women at the present time, and of these, just over 45,000 are aged between 25 and 49. This is a large percentage of the figures that young and middle aged women account for.

Furthermore, according to the Office for National Statistics, over 1 million women are currently unemployed in Britain. This statistic is the highest in 17 years, and experts warn the situation is set to deteriorate in the coming years. Shockingly, economists predict that the number of unemployed women is set to rise dramatically by 2012, to 2.2 million.

The Consumer Credit Counseling Service said the majority of its clients declaring bankruptcy are female. The top reasons include living beyond their means, closely followed by the break down of a relationship, loss of earnings and serious illness.

In conclusion, the recent figures surrounding bankruptcy clearly show that women are in more danger of financial meltdown than men. Women must protect themselves by cutting back on lavish spending in order to avoid bankruptcy in the future. Shopping in cheaper stores, holidaying close to home, and even cutting out a morning coffee can all contribute greatly to ensuring financial security in the future. These cutbacks also teach valuable budgeting skills which will give these women the right start in disciplining themselves financially.

If you feel you are struggling to pay any debts, whether it be credit cards, store cards, personal loans or even a mortgage, Sterling Green can help. We offer a range of financial solutions to help you recover from the recession. We offer debt management plans, tax management programs and even a re-mortgaging service.

Our team of experienced advisers are committed to finding the best solution for you. For a free consultation call us free on 0800 083 2827.

Written by Katie Simpson

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Posted in Bankruptcy, Debt Consolidation & Re-Mortgages, Debt Management, Loans, News & Features, Tax Debts | No Comments »

7 Million Brits Are ‘Shopaholics’

Wednesday, October 27th, 2010

According to new reports, 4 million U.K women are ‘shopaholics’, with each owing £3,400 on average. This equates to 1 in 6 British women.

This new report discovered that more and more women are finding themselves in a financial crisis as their spending has become out of control. The main reason for women running up debts on credit cards and store cards is because they are trying to obtain a celebrity lifestyle. A large number of these so called ‘shopaholics’ have even taken out personal loans to maintain their extravagant lifestyles.

At a time when the economy has not yet recovered from the recession and many people have been made redundant or fear for their jobs, some people find comfort in shopping. This attempt to counter negative feelings can prove to be very costly indeed if the situation becomes uncontrollable.

The recent findings have shown that it isn’t just women who have bad spending habits. The study also found that 3 million men in Britain are also shopaholics. This figure equates to 1 in 7 men.

 Men were found to have the most expensive tastes, with the average male spending a massive £570 per month on designer clothes. Women were more likely to spend on the high street, running up an average monthly bill of £300.

Men who considered themselves to be shopaholics were also discovered to spend an average of £338 per month on skincare, cosmetics and beauty treatments, compared with their female counterparts who spend £191 per month.

This shocking research shows that any lessons that were learned during the recession have been forgotten by the millions of people who are continuing to live beyond their means. There are lots of things to worry about these days, like paying all the bills, the mortgage, making sure the kids have new clothes etc. It is hardly surprising that a lot of people find pleasure in shopping. The danger is that the good feeling that people experience after buying new clothes or going to the salon, can become an addiction. This is where the problems begin.

It is always good to treat yourself occasionally, but there needs to be a limit to how and when you can spend. It is a good idea to budget each month, so that you can monitor how much money goes into your account, and how much is coming out. This will ensure you can clearly see how much money you have left at the end of the month and you can enjoy the spare money without worrying that your hobby is becoming a problem.

 If you feel you are struggling with credit card, loan or store card debt, a Debt Management Plan could be the solution to your worries.

Here at Sterling Green we have experienced advisers who create a bespoke plan to help you gain control over your finances. For more information, call us free on 0800 083 2827.

Written by Katie Simpson

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Posted in Debt Consolidation & Re-Mortgages, News & Features | No Comments »

Millions Take Part Time Jobs Due To Recession

Wednesday, September 1st, 2010

New research by the Office of National Statistics found that 7.84 million people in the U.K are working part-time in an attempt to resolve financial issues caused by the credit crunch.

 As Great Britain struggles to claw its way out of the recession, and employment vacancies are few and far between, millions of people are taking whatever they can get.

Many workers have also been forced to work part-time hours in a previously full-time position, as companies are struggling to stay financially afloat at this difficult time. Millions of businesses have had to cut employees’ hours in a bid to keep their companies from entering liquidation.

Within the first quarter of 2010, 184,000 jobs were created. A staggering 115,000 of these were part-time vacancies. This shows that firms are opting to hire part-time staff during these times of economic uncertainty. There are several reasons for this, the most prevalent being that part-time workers offer flexibility within their role and their hours can adapt depending on when the busiest business times are. Another common reason is these companies can still keep their staff, and keep their business trading, but have less expenditure.

Bank Of England Governor Mervyn King recently warned Britons that they can expect to see a rise in inflation, but a decline in the rate of economic growth in the near future.

Vicky Redwood, chief UK economist at Capital Economics said: “The rise in part-time workers shows that people are taking whatever is available to them. It reflects employers’ nervousness about the strength of the economic
recovery because of the belief that it’s easier to get rid of part-time workers than full-time.â€

This will no doubt bring back fear to part-time workers that their jobs may be in jeopardy. Also, with more and more applicants applying for each available position, the chance of securing a job becomes slimmer and slimmer. People are hoping that the economy will begin to recover soon to avoid unemployment rates hitting record highs.

Although people are worrying, businesses claim that by reducing employees’ hours, they have avoided making mass redundancies, thus leaving their employees in a better position to handle the tough times until the economy recovers.

KPMG, a professional services firm, says it has saved £4 million or the equivalent of 100 jobs by having almost 25% of its workforce on voluntary 3 and 4-day-working-weeks throughout the past 2 years.

According to figures from the Treasury, the number of women in full-time employment plummeted by 8,000, but the number of females in part-time roles increased by 39,000.

Currently, the amount of employed women aged 16-64 stands at 65.6% while the number of employed men within the same age range stands at 75.5%. This proves that women are the hardest hit by the economic downturn and will likely feel the pinch more than U.K. men.

The Treasury has estimated there will be 600,000 job cuts within the public sector over the next 5 years, and experts have warned that this will far outweigh any rise in job opportunities from the private sector. This revelation is extremely discouraging to anyone working within the public sector and will surely cause more angst within the workforce.

Overall, it is encouraging to know that a positive thing has arisen from the negativity surrounding the millions of redundancies over recent years. At least businesses are attempting to hold onto their employees, even if they are on reduced hours and reduced pay. Slowly but surely, the economy looks set to recover. Even if this is not going to happen for some time, it is reassuring to know that more employment opportunities are arising from the recession.

Written by Katie Simpson ©

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Penny–Pinching Escalates As U.K. Citizens Continue To Feel The Strain Of The Recession

Wednesday, June 30th, 2010

U.K. citizens have stepped up their quest for cheap deals on everyday items, according to recent research conducted by Santander.

The bank found that 80% of people surveyed admitted attempting to save money on a daily basis by taking the time to shop around, looking for cheaper deals on essential items such as cleaning products and toiletries, and even cut-price clothes.

The survey also found that 1/5 of employees now bring a packed lunch to work instead of buying lunch every day, while 10% have given up their daily cappuccino from the coffee shop.

Even more shockingly, 3% of parents had reduced their children’s pocket money in a bid to save as much as possible.

The study found that people were more likely to repair gadgets and electrical items rather than buy replacements.

They were much more likely to spend less on a weekly supermarket shop, opting for supermarket own products rather than branded items. Charity shops have also seen a large rise in sales, proving many more people are buying second hand goods.

Furthermore, record numbers of people are signing up to weekly email newsletters where internet users can share their money-saving tips and any offers they have found around the country, for example, ‘2-for-1’ and ‘Buy One Get One Free’ offers.

According to one tip-sharing forum, on MoneySavingExpert’s website, many people have been forced to go to extremes to make their monthly income stretch, even watering down shampoo and fabric conditioner, cutting their own hair as opposed to visiting a hairdresser, gluing holes in shoes and even reusing old socks and hosiery as dusters!

These latest findings suggest that the recession is far from over for the average U.K resident and outlines the lengths people are forced to go to each day, to save a few pounds. This goes to show that every last penny really does count at the moment.

Posted by Katie Simpson ©

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U.K Residents Conceal £55bn Worth Of Debt From Partners

Tuesday, May 11th, 2010

We all know how hard the recession has hit in the past year. Trouble with keeping up with repayments and juggling what feels like hundreds of financial commitments each month are common woes felt by most people at this time. But also there are people who are living with the stress and strain of hiding debts and financial difficulties from their loved ones, often even their partners are unaware of the extent of the debts they have accrued over the years. A recent survey conducted by the Post Office outlines just how serious this problem has become for many individuals.

Recent studies have revealed that more than a fifth of us lie to our partners about how much money we owe. To the extent that as a nation we are concealing £55 billion in secret bills, according to new research from the Post Office.

The average U.K citizen has nearly £10,000 worth of debt, but only admits to owing half that amount when talking to their partners, friends or family. The consequences of these lies, this new survey suggests, are dire.
Nearly 50% of people who are have secret debts suffer with sleepless nights and a fifth experience mood swings, while more than 10% turn to comfort eating and heavy drinking to escape their financial worries, claims the research.

In addition to the afore mentioned  problems, 12% of those surveyed are under so much pressure to keep their debts secret, they even experience problems at work.

Not surprisingly, many secret debtors (6%) encounter relationship difficulties as a result of the strain that their financial burden brings.

“The recession has put a massive strain on many families,” said Doug Strachan, director of financial services at the Post Office. “Many families may be, for the first time, experiencing levels of debt that they cannot control.”

The study also found that the main cause of debt for women was overspending on clothes, with takeaway coffee and chocolate coming in at second place. The primary reason for men’s debts is spending too much on alcohol and gadgets. As well as being the prime reasons for such high levels of credit, these are the expenditures that are most likely to be hidden from others.

“Hiding the extent of debt from a partner or family member may give a false illusion of control or independence,” said Donna Dawson, psychologist. “But the reality is that our mental and physical health suffers.”

In conclusion

Although admitting to having debts that are substantial is embarrassing, honestly really is the best policy. Having read about the level of adverse side-effects many people are experiencing when attempting to conceal their debts from others, the best way to deal with the situation is to avoid spinning a web of lies where your tracks need constantly covering.

Nobody wants to see loved ones struggling with depression or having trouble at work because of the strain of hiding debt problems. If you yourself are covering up debts, start by admitting you have these debts, and research what help is available to yourself. Don’t be afraid to admit your debts are larger than you previously implied. There are people that can help you and your family and partner would most likely want to help and support in any way they can.

Although the initial steps to admitting your troubles will be difficult, you are doing yourself a huge favour by being honest and beginning to put a solution into action. Remember that nothing is worth risking your health.

By Katie Simpson ©

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Posted in Debt Consolidation & Re-Mortgages, Debt Management, Loans, News & Features | No Comments »