Following on from my last blog, it seems student debt is the subject of the moment. 

Half way through the student year, figures are being released from the National Union of Students (NUS) confirming approximately 28,500 school leavers are still waiting to receive their student grants. 

It’s bad enough that we now live in a society where university is quickly becoming a class system – only those with the funds to go there, are the ones privileged to receive such a high class education.  But it now seems for those who have the desire but not the funds to go, a catch 22 scenario presents itself. 

Without the grants being distributed in the appropriate and timely fashion, how are we expecting the future leaders of this country to go to university? It seems, the answer is either, the bank of mum and dad…or more likely…debt. 

September 2009 saw 16% of student loan applications waiting to be processed.  I can only imagine with a six month delay on the distribution of grants this figure will have substantially increased?  What a way to start their adult life! 

Come on now – surely we can do better than this for our children?�

There used to be a time when people planning to have a baby did so without any thought to cost or affordability. But when speaking to a colleague who’s “baby” is now just over one, she told me, “the days of people telling you a baby doesn’t cost you anything, are long gone!” 

And it seems, she’s not the only to think this.  According to a new survey from
LV, the cost of bringing up a child from birth to age 21 is around £200,000.  This figure has risen by 43% over the last seven years – that’s an increase of £86,000! 

The current annual cost of bringing up a child works out at around £9,610/£800 a month/ £26 a day. 

When talking this over with my colleague, she explained – should both parents feel they are financially better off if they both return to work (as is the case in her situation), then even from an early age, they have to account for the cost of full time nursery.  And depending on where in the country this may be, this can range from £600 - £1000 a month.  On top of that are nappies, which, based on one pack a week, work out at around £40 a month, and then if the baby is still on formula, that’s another £40 a month.  In addition to that, there are of course new clothes and accessories, so in total, rounding it up, even for a young baby, monthly costs can be approx £1200 a month. 

Furthermore, if both parents are working, they have to consider that they may not qualify for the same amount of benefits other do, and so based on their net salaries (take home salary), they still have to cover normal expenditure as well, such as the mortgage/rent, food, utility bills, etc.  And of course….more than likely, presents for other friends who are also having a baby! 

So it’s certainly not a simple case of making a baby anymore – it seems, the modern day approach must be, to make a savings account first! 

If you’ve had experience in this field, why not share your story here and comment on how others could save money when struggling to make ends meet whilst making, housing and keeping a baby, or two, or three….including the grown up ones!

The blame of student debt has often been debated before – and normally, assumptions are made that the primary reason for this debt are student past times – the kind which lead to sore heads and unfocussed brains the day after the night before.  But last week, figures from the NUS confirmed that “the student” may actually be the scapegoat for a more shocking reason leading to all this debt – the lack of organisation from the government to distribute grants that are relied on. 

I’ve touched on this issue before, and unfortunately feel the need to do so again as the National Union of Students (NUS) confirm approximately 28,500 school leavers are still waiting for their student grants. 

It’s bad enough that we now live in a society where university is quickly becoming a class system.  Only those with the funds to go there are the ones privileged to receive such a high class education.  As many know, the golden ticket of a degree qualification often provides a fast track route through the working system, up to management where the higher salaries are gained. 

It now seems with this latest news the catch 22 cycle is getting worse.  Not only are general affordability issues stopping students going to college and university, but now the appalling lack of organisation and time planning in distributing the grants to those who are reliant on them, is forcing many students or their parents in to immediate debt. 

For some, their parents are sacrificing their own credit rating and well being, to ensure their children have the opportunities they want and need, in order to create the life they desire.  In other circumstances, where parents can’t even afford to offer this, it’s the students who are opting into debt, as they know without it, and with their grant still “on its way”, they have no choice if they still want to pursue their dreams and aspirations of further education.  The common analogy of the taxi “around the corner” rings a bell ;) 

The report from the NUS confirms this whole fiasco has been going on since September of last year – 6 months!!!  If this isn’t ridiculous, I don’t know what is. Maybe it is what is expected from the death throes of a Brown government running around like headless chickens – but it is affecting our students and their lives!  

When we’ve experienced the harsh times of the recession, debt and all the sadness, destruction and heartache this has brought to people’s lives, surely government would understand the necessity to get their act together and sort out these grants.  I am lost for words.  Before long there will be two types of students alone – those who are wealthy enough to afford university on their own, and those drowning in debt who have made the ultimate sacrifice in the ultimate hope that their higher level of education reaps the rewards it should promise to. 

The word of the day is surely “trust” 

Recently, my team have been commenting with news services regarding the need to ensure as an industry, we’re providing people with as many routes to free and accurate advice as possible.  The announcement earlier this year, stating the
UK is officially out of recession, seems to have created a wake up call for many people – creating the opportunity for people to feel safe in taking stock of their debt and making key decisions about their future. 

Why is it then, when such serious issues are at hand, organisations such as the IVA Review Board, rear their ugly head and pray on the worries of those already in an IVA and paying back their debt honestly? 

As many readers may know, over the last few weeks we have seen several articles in the press about the IVA Review Board, also claiming to be the Department for Personal Insolvency Review and Assessment.  The parent company of this brand, INTL Marketing, has already had its licence revoked (December 2009) but as they’re appealing this decision, their licence still stands.  And during this time, they’re certainly making the most of it - contacting as many people as they can, implying they might be in the wrong/inappropriate IVA and entitled to compensation. 

In light of the IVA Council drama, and the Dispatches programme in 2009 on Marlin, I would hope that the public are with their wits and understand, when receiving letters such as the one from the IVA Review Board,  It may also interest people that although the IVA Review Board claim they are not connected to the IVA Council, INTL Marketing were a consenting party with others in signing settlement terms with me and ClearDebt in the case against them. 

There has also been a spate of newcomers into this area and many readers may now be approached by the likes of Care Free Solutions or First Step Finance. Both these new entrants into this arena are on the Office of Fair Trading’s radar, so if any reader receives any communications from these organisations or anything similar please contact me (details below). 

As Chairman of the DRF and a known campaigner for ethics and “grace” within this industry – it saddens me to see activity like this, which could significantly damage someone’s recovery from debt, let alone their personal life. 

I have linked here to a copy of a letter which one of our clients received from the IVA Review Board and hope this helps people understand the true nature of this company.  Their opening line states they have been “tasked” to review your IVA – and certainly, I can assure my clients, they haven’t! 

If you receive a letter like this – please speak to your IP first before doing anything else. 

For more information on this subject, or if you have any concerns, you can also contact me direct at: david.mond@cleardebt.co.uk 

The weekend has done me no good and unfortunately I’m still wreathing from the comments of John Healey last week. I’m sure I’m not the only one. 

The Council of Mortgage Lenders has, this week, confirmed 46,000 properties were repossessed last year – a 15% increase on the year before.  That works out at just under 400 repossessions a month which breaks down to 20 a day. That’s 20 livelihoods packed up into cardboard boxes because their debt had caught up with them too late in the day. 

So what does 2010 really hold for us?  Well, if it’s up to John Healey, we’ll probably be seeing even more increases! 

As people adapt to our status as officially out of the recession, I fear, even more bad luck is yet to come – particularly for those who still haven’t realised the weight of their debt.  Even if we’re lucky enough to experience a 5% decrease of repossessions this year, that still means 13 people every day will loose their homes.  And in many cases, we’re not talking individuals – we’re talking about families – we’re talking about children. 

So Mr Healey, still in favour of increasing repossessions and using them as a wake up call for people in debt, or have you had time to sober up your thoughts and think about how we can help people keep their homes, rather than rushing to boot them out?!

Or maybe not?   

It seems the recession has had quite an effect on Brits in love, leaving them so worried about finances, there’s no longer room for romance. 

The Priorities in Life Index confirms 52% of those questioned, confess they would like to make their partner their main concern, whilst 36% admit they’re turning their backs on love to focus on making ends meet. 

It’s never been a secret that arguments about finances are often cited as a reason for a break up.  But this year’s Valentine’s Day, seems to be one which is bringing a more sober approach than usual.   

Feeling the pound rather than the pinch is appearing to be the preferred option as partners turn off to large displays of affection.  The time may finally have arrived where flowers, chocolates and jewellery are replaced by more simple messages that can be said in person. 

So whilst Yorkshire Bank state they believe £5million will be spent on celebrating February 14 in style, I wonder if they’re really right. 

So, why not share your views on this subject?  Commercialised or not, is Valentine’s Day 2010 something you’re taking part in, or is this the year you’re choosing to opt out?

This is what many people around Britain will be saying to their credit cards this February, as their plastic friends treats them to a gift or two in the recovery to the recession. 

According to Credit Action, even with the best of intentions, people are falling back in love with their credit cards and returning to plastic as a form of extra cash. 

Although people may have done well in curbing their spending during the recession, it seems many consider the news of “the end of the crunch” as an official “get out and spend” alert.  But surely we’ve learnt our lesson? Or maybe not. 

As there are now signs of milder days to come, the shops are filtering in their spring season products and temptation is looming.  After so much doom and gloom, who can resist the appeal of brighter days – and the wardrobe to match.  And if it isn’t clothes, maybe it’s some new bedding that you’ve been putting off buying, or a new set of crockery? 

But do we really need these things or have we just reached the end of disciplined spending? 

If you think you’re struggling to continue tightening the purse strings and have waivered to indulge in non-essential purchases; then share your thoughts here on why you think people are now turning back to credit cards to buffer a little home and self improvement? 

As parents around the
UK become more concerned about the future financial stability of their children, questions are being raised about the lessons we are teaching our kin regarding their money management and how effectively we are doing this. 

Never has pocket money been so important ;) 

Research by Nationwide and the Personal Finance Education Group, shows 69% of parents questioned are concerned about the issue of their children’s ability to understand their finances – a 7% rise in the number of parents concerned about this issue two years ago.  

And although the consensus is that the responsibility to teach these lessons are down to the parents just as much as the schools – the worrying factor is that those parents asked, admitted, they’re not sure they can! 

I wonder if these admissions don’t just come from a lack of understanding of maths and finance, but also, from a fear of recognition to admit to their children, the experiences of debt and recovery they have gone through during these hard times. 

So, how do we deal with this?  Is this something parents and schools could be working on together, rather than separately?  Could it be that money management classes can be held after school hours for parents and children to do together?  Therefore, not only serving as a finance lesson for both, but acting as a modern day family activity which unites the unit as one, and makes it clear that everyone is working towards the same goal, regardless of their age.   

Although there are finance education programmes now coming on to the scene, I don’t believe there’s one which is done so through the schools, and encouraging the family to work together. So….what do you think?  Is this something we could be campaigning for to schools across the country?  Let me know what you think here. 

We may be cutting back effectively on our clothing budgets, but it seems the odds are against us when it comes to putting food on the table. 

According to research by the Daily Mail, when shopping for essential foods such as bread, milk, meat, etc – a shopping basket of just 37 items comes to £53.63.  Now adding to that the non food essential items which we all have to buy such as household cleaning products, toiletries and so forth - before you know it, the shopping bill is swiftly creeping up to three digits! 

At the end of the day, we could just say, well, that’s life – you have to eat and I would hope – you also feel, you have to keep a clean home.  But….should we have to pay increased prices for such “privileges”?  In a recession?!  And some may bark back at me, “well, officially we’re not in a recession anymore” – but it doesn’t take a genius to work out that at the moment, nothing has really changed.  People are still watching every penny they spend, so why are the prices going up? 

Not only have food prices gone up approx 7.5% but unleaded petrol has jumped a whopping 30% in just 12 months! So if these are the kinds of increases we’ve experienced whilst “in the recession”, what is yet to come now we’re “out of the recession”?  I suspect, if this issue isn’t addressed soon, this can only mean one thing for the man on the street – more debt, more worry and baked beans for dinner! 

If you’ve views on this week’s announcement that we’re now officially out of the recession, then share your thoughts here.

I remember a time when even if you’d bought something which was considered “cheap”, you’d never admit it…to anyone.  In fact, some would go so far as to take out the cheap label and stitch in a new one, implying the product to be a much more admirable brand. 

But as Juliet said to Romeo, “What’s in a name?  That which we call a rose by any other name would smell as sweet” And it seems, in light of the recession, our nation of shopaholics would agree. 

As the tables have turned, PayPal have confirmed that 54% of consumers are now well and truly focussed on the hunt for the bargain.  Heading for the shops with a game plan of what they’re be prepared to spend – those who successfully seek out the cheapest deals in town, come home wide eyed, savouring the taste of success. 

In fact, bragging about how cheap your clothes are has never been so fashionable.  Primark has now become a fashion statement and those considered clever shoppers, are the ones with the lowest price tag rather than the biggest shopping bag. 

It’s good to see that people’s approach to spending has changed as a result of the recession and those who used to throw caution to the wind when out and about, now take with them a little more sense and sensibility rather than an extra piece of plastic. Reassuringly, PayPal’s research confirmed this theory as 17% of those questioned, confirmed they prefer to pay with cash now, rather than card. 

So as we start 2010 a little more thrift savvy, I’ve created a space where we can start to share a money saving tip, or two…or three…or more.   

So log on now to http://www.facebook.com/cleardebt and make good use of the bargains displayed there, and share any you might have found too!