New Mum's dilemma going back to work due to debt

More than half of new mothers return to work due to financial pressures, a survey finds, with 56% admitting they were unprepared for the fiscal impact of having a child.
New mothers are being forced back to work by debt and financial worries, with many cutting short their maternity leave, according to research published today.
In contrast to the image of modern mothers "having it all", more than half (52%) of those returning to work after the birth of a child do so because of financial constraints, and one in 10 are doing so before the end of their planned maternity leave.
Only 22% choose to return because they want to continue their career, the survey by comparison website uSwitch found.
It found that the average net household income drops by 34% from £3,431 to £2,266 a month while on statutory maternity pay. But at the same time costs soar, with parents spending an average of £2,152 in the run up to the birth on baby items, and a further £2,521 – more than a month's reduced net household income – after the baby is born.
The average amount saved in anticipation of having a baby is £3,265, but 56% of the 1,000 mums questioned for the survey said they were not fully prepared for the impact of surviving on a reduced income.
Nearly a third of new mums were not aware of their company's maternity package when they decided to have a baby, and 30% decided to go ahead with getting pregnant even though the package was not ideal.
More than four in 10 mums have ended up in debt while on maternity leave, with an average £1,329 incurred.
However, although the financial impact forced 9% back to work early and another 9% to rethink their plans to be a stay-at-home mum, 40% take a pay-cut so they can work part time.
Worryingly, just 21% of new mothers returning to work believed their future progression and earning capacity had been unaffected by their maternity break.
Ann Robinson, consumer policy director at uSwitch, said: "Debt and financial considerations combine to be the biggest motivating factor behind new mothers returning to the workplace. Despite women being told that they can 'have it all' and can choose whether to be a working or stay-at-home mum, the fact is that most have this choice stripped away from them by the financial realities of modern life.
"With the new government planning to cut child trust funds and the impending budget causing concerns over pay freezes and redundancies, family finances are under more pressure than ever. The high cost of living coupled with the often crippling cost of a mortgage means that many households today need two incomes to get by. Unfortunately, new mothers are often paying the price for this by seeing their choices taken away."
If you’re a new mother and struggling in debt, visit DebtLine-Direct.com today and let us help you get your finances back under control.

Bad Credit Loans

* Bad credit loans are heavily advertised online, in the newspapers / magazines and also on television.
* Have you been refused for a bad credit loan or still trying to find out if they actually exist?

These bad credit loans carry very high interest rates and do not come at an affordable rate for the people that tend to be applying for them.

The companies offering the bad credit loans are very aware, just how vulnerable most of the consumers are that approach them for this type of lending or credit.

If you're struggling with your finances and want to consolidate your debts, visit; DebtLine-Direct.com for advice.

What IS a County Court Judgement?

County Court Judgement - CCJ - CCJ's

"At some point in our lives, we all struggle with our finances, sometimes resulting in a CCJ."

How did I get a CCJ?

CCJ's and defaults are registered on your credit file against you for the following 2 main reasons.


1: If you are late or fail to repay any unsecured debts

2: If you ignore debt collection requests

Your original creditor or lender will pass any account that remains unpaid to a debt collector of their choice. These collectors are usually working for the lender on a number of cases.

There are laws and guidelines that creditors must follow to compliantly recover the funds outstanding from you.

Because of your rights under the Data Protection Act 1998 and the Consumer Credit Act 1974, it is possible for you to check your credit files yourself by contacting one of the main credit agencies, who, for a fee of just a few pounds, will give you details of all your credit details. The two main credit reference agencies are Experian and Equifax.

Does a CCJ have long term effects?

A default is registered prior to any debt collection company being notified and then the collection company steps in to recover the defaulted funds.

If you fail to make an arrangement with either the creditor or respective debt collector, you can be forced into a court action which can then result in a County Court Judgement known as a CCJ being registered against your credit file.

This CCJ is then available for other lenders to see prior to agreeing to lend you any more money. A CCJ will show up on future credit checks. You will find that in most cases a CCJ or default can and will prevent an individual from obtaining further credit. We offer debt help and advice daily to people with defaults or a CCJ.

A CCJ or default will remain on your credit file for a period of 6 years and can have serious detrimental affects on you obtaining credit at an affordable repayment rate.

What can I do about a CCJ being held on my credit file?>

There are ways to return your credit rating to pre CCJ status.

A CCJ can be legally removed from your credit records in just a few short days or weeks if incorrectly lodged, enabling you to secure the loans or goods you need.

If you would like advice or help with CCJs then call Best Solution's free debt helpline now on 0800 933 6666.

Their lines are open 24 hours a day, 7 days a week and your call is free.

The punishment for Bankruptcy in ancient times

The penalty for declaring bankruptcy in Ancient Rome was slavery or being cut to pieces. The choice was left to the creditor. By the Middle Ages, the treatment of insolvent debtors had softened considerably. In Northern Italy, bankrupt debtors hit their naked backside against a rock three times before a jeering crowd and cried out, “I declare bankruptcy”. In French medieval cities, bankrupts were required to wear a green cap at all times, and anyone could throw stones at them. There are some interesting debtor treatments in the history of English law. From 1604 a debtor could be placed in the pillory for non-disclosure of his assets to the Commissioners in Bankruptcy. He would then have his ear nailed to the pillory and cut-off. Some early debtor ears have been kept for posterity (pictured below) at KLS. They also were thrown into prison.



Luckily, in 2010 we are more liberal! If you’re struggling with your debt and would like some bankruptcy advice, then visit Bankruptcy Help Online – a brilliant and informative website about what to expect upon declaring bankruptcy.
Bankruptcy Help Online was set up to assist people with debt problems to regain control of their finances and help to make sense of the Insolvency process. Deciding on bankruptcy as a debt solution can be an emotional, stressful and complicated decision - that's why we're here to provide support and assistance at every step of the way. There are many things to consider when deciding to go bankrupt. There are pros and cons of clearing your debt through bankruptcy and it is important that you are aware of all the implications it will have before you agree to anything. Here at Bankruptcy Help Online, we endeavour to give you all the information you could possibly need to know, including other debt relief solutions such as a debt management plans, IVA's, or Trust Deeds. Whether you need someone to provide you with a 'hand-holding' service to help you get your finances back on track, or if you just need to have an informal, confidential chat with a professional, give us a call on 0800 988 2939.

Best ways to get rid of debt on your own

Trying to get rid of debt can be really tough and cumbersome. But if you have the determination and patience, you can do it by following 5 simple steps as given below.

1. Understand your financial situation: To do this, you must calculate your debt-to-income ratio and see how much debt you owe and which debt is more important and should be paid first.
2. Understanding the credit: You should know about your credit report and correct all the errors and improve your credit history. You should know all the information regarding your credit history or else ignorance will cost you money.
3. Seek help to get out of debt: First of all seek help of a reputed and trustworthy consumer credit counseling agency. You should prevent filing a bankruptcy at all situations, as there are certain rules pertaining to it and these rules can make it difficult for you to get out of debt. You can also look for online help to get out of debt. Taking small steps at a time can be very fruitful indeed.
4. Cut off your unnecessary expenses: If you try, you can easily save a lot every year on credit cards and cut other costs. If you have a successful budget plan of your own, you can easily facilitate your payment of debt. Once you plan out your debt payment scenario, it can easily make you debt free fast.
5. Avoid common mistakes related to debt and credit: You shouldn’t succumb to the credit card policies which are too good to believe. You should try to know the truth of the credit card companies. You should completely avoid payday loans as they are very difficult to escape. Assess all the details before investing in a new car as your car payment can kill your chances to qualify for a much needed mortgage. Completely be aware of the mortgage policies and their risks. Go for mortgages only when they are appropriate for you. Forgo terrible need to go for a spending spree or else getting out of debt will be truly difficult for you.
Being scared when in debt is very natural. But you should be very focused in paying off your debts. If you really want to get out of debt, you must follow the steps mentioned above and give yourself a chance to lead a stress-free life.

For free debt help & advice, please visit; DebtLine-Direct.

How to save money

It's so easy to over-spend these days. You see something in a shop maybe that you cannot afford yet a little voice just niggles inside, 'Well, I COULD treat myself just this once'. Sound like you? Well, you're not alone! Millions of people in the U.K overspend and simply do not know how to budget their money properly.

Here are some starting TIPS on how to manage your money to last you until the next pay-day.

Draw up a budget plan

Might sound daft, but trying doing it this way. Open an Excel document (or buy a cheap notepad for you technology dinosaurs), and start making a list. Firstly, list any income you get a month, be it your wage, or benefits, or some other type of income. Next list your essential expenditure (your NECESSARY outgoings a month), i.e. mortgage/rent, bills like gas/electricity/water/telephone and food and travel (petrol, bus/train fare). Then list your other outgoings that aren't completely necessary to survive i.e. Film rentals, magazine subscriptions, website subscriptions, expensive mobile phone contracts. Alright, you can't do anything to change your mobile contract if you're on a yearly but you CAN cut down on things that are not completely necessary, like film rentals.

What's Your Income? What's Your Expenditure?

Next bit is to add up all your expenditure and take it away from your income. What have you got left? Can you now think about stopping these unimportant outgoings? If you can cross something off the list and compromise, then well done. Next job is to divide the amount of money you have left over a month into 4. Because this is how much you're going to let yourself spend a week. If you're still struggling with what you have left over then you need to compromise further, be it spend less on food (go to a less expensive supermarket and cut back on the takeaways and bottles of wine!), or spend less on the phone (certain phone companies like Talk Talk do deals where it's free to talk after 6.pm and at weekends).

I Find It Hard To Find Good Deals

Look no further! This is why we are here to help. The Money Express has been set up especially for people such as yourself. What we have done, is searched the web to find the BEST deals for you. Things like, comparing credit cards, comparing loans, comparing mortgages, comparing utility bills, comparing bank accounts, comparing travel insurance, comparing home insurance, comparing car insurance, comparing pet insurance, comparing van insurance to name but a few. Our mantra simply is; why pay more when you can pay less? It's really as simple as that.

Come and visit our site; www.themoneyexpress.co.uk/money

You won't be disappointed. There is also an online forum and chat room where you can talk to people in the same boat as you! :D

I'm Still Struggling :(

STILL struggling? Now's the time to think seriously then. If you're living on a tight budget and cannot afford to do ANYTHING or eat nice foods or go out with friends then you're going to be miserable. Life is supposed to be enjoyable, not feeling down because you have no cash. You need to think about if you can change this. Is it time to ask for a promotion? Start looking around at new jobs with a higher wage closer to home? (To cut back on fuel and travel costs). Or maybe a second job? At a pub/cafe? Or can you be an entrepreneur and think about starting your own business working from home? This takes time however and in the meantime DO NOT give up your day job. Are you living alone? Maybe time to think about moving your partner in, or a friend/lodger? Is your rent too high? Time to move out? Mortgage too costly? Time to downsize? Are you in debt? TIME TO GET HELP!

Debt freedom day - an ‘interesting’ concept

From 1 January to 10 March 2008, the ‘average Briton’ didn’t really make any money for themselves. Believe it or not, they’ll need every penny they earned just to pay this year’s interest on their credit card and loan debts, without even touching the debts themselves.

That’s why independent financial adviser website Unbiased.co.uk named 10 March ‘Debt Freedom Day’, the day in 2008 when people had finally worked long enough to pay the cost of their debts.

20p in the pound
No-one, of course, put their first 70 days’ wages towards their interest payments. Even if the terms of the credit allowed it, people need their money for food, rent / mortgage, petrol…

So 10 March is really a symbolic date, but it’s an important symbol, reminding people just how much of their money is taken up by interest payments. It’s more realistic to see interest payments taking up around 1 day’s wages a week – or about 20p of every pound the average person earns throughout the year.

70 days – and climbing?
Last year’s Debt Freedom Day came on 1 February, ‘just’ 31 days into the year. Even then, the thought of working for a month (or 1 day in 12) to pay off interest was alarming, but this year the figure is closer to 1 day in 5.

So what happened? According to Unbiased.co.uk, credit card debt has dropped from £55.6 billion to £54.9 billion, but there’s been a huge increase in personal lending over the last year – personal loan levels have risen from £2.6 billion to £9.8 billion. As a result, British consumers are faced with interest charges of nearly £1.5 billion.

This time next year, will we be looking back on Debt Freedom Day 2009, or will we still be waiting for it? We can’t know for sure, but we’re seeing reassuring signs that people are starting to pay more attention to debt matters.

Hope for next year?
A recent study by Alliance & Leicester showed that debt problems have become a common topic of conversation – more popular than celebrities or sport events. While 40% of respondents said they’d recently spoken to a friend about the latest sporting match, a full 50% had discussed debt problems in the recent past.

It’s good to talk. Apart from reminding people that they’re not alone, it’s a great way for them to pick up good advice – and find out what could happen if they don’t take action to sort their debts out. They might also hear ‘real-life’ stories about the various debt solutions, which might prompt them to seek debt help and pinpoint the debt solution that might be right for them.

Debt management, for example, can be an excellent way to address the issue of unaffordable debt. Anyone can talk to a creditor and ask them to accept lower payments, reduce interest and / or waive charges, but many people feel more comfortable asking an experienced debt management company to do this on their behalf.

Or they might choose to pay off their high-interest debts with a single debt consolidation loan. This can seriously reduce their monthly payments, but there are downsides to this. It’ll probably take them longer to repay their debts, and securing any debt against a house can put that property at risk of repossession.

Finally, people in severe debt might consider an IVA (Individual Voluntary Arrangement) or even bankruptcy. As forms of insolvency, IVAs and bankruptcy both have their drawbacks, but they do provide a valuable way forward, giving people the chance to write off the debt they can’t afford to repay – and look forward to a debt-free future.

To see if you qualify for an IVA go to www.debtline-direct.com and fill in a form that will take you no more than a minute!

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Loan sharks face further attacks from regulator

About 200,000 leaflets and posters will be handed out to warn people of the danger of borrowing money from illegal, and sometimes violent, lenders.

The campaign is particularly aimed at households in Scotland, the North of England and the West Midlands.

It is thought these areas contain about half the 165,000 homes in Britain who borrow cash from loan sharks.

"Unlicensed loan sharks will often offer cash loans without paperwork, they may take benefit or bank cards as security, and threaten or use violence to get money," said the OFT.

The regulator said its work had already assisted 11,500 people and led to £31m of illegal loans being written off, with prison sentences being handed out to some unlicensed money lenders.

The campaign will highlight the dangers of being charged exorbitant interest rates as well as the possibility of suffering threats and violence.

Now even best savings bonds pay under 3pc

Interest rates offered on new fixed-rate bonds have been falling fast.

The top one-year, fixed-rate bonds now pay less than half the 5.3 pc inflation rate.

The top deals come from Kent reliance and the Post office, where the deposit taker is Bank of Ireland at 2.4 pc after tax (3 pc before) - these pay just £240 interest a year after tax for every £10,000 saved.


Halifax now pays just 1.88 pc (2.35 pc) fixed for one year and Nationwide 2 pc (2.5 pc). other new one-year deals include Chelsea BS, now part of Yorkshire BS, at 2 pc (2.5 pc), while National Counties is down at 2.16 pc (2.7 pc).

But these are at the top end of deals on offer. Barclays pays just 1.4 pc (1.75 pc), giving you a measly £140 interest a year for each £10,000 in your account. the news for those willing to tie their money up for two years is also bad. the top rate is now 2.96 pc (3.7 pc) from ICICI Bank, while halifax has cut its rate to 2.76 pc (3.45 pc) and Nationwide just 2.72 pc (3.4 pc).

And things are unlikely to get better, as money markets are not pricing in a rise in base rate until the autumn of next year.

Moyeen Islam, fixed interest strategist at Barclays Capital, says: 'The money markets have priced in rates staying at these levels until September 2011.'

Three-year deals are also down, although you can still earn 3.36 pc (4.2 pc) with Coventry BS. even if you are willing to tie your money up for five years, the best you can do is 4 pc (5 pc) from ICICI Bank or Coventry BS. Barclays pays only 2 pc (2.5 pc).

If you go for a tax-free account, you cannot match inflation. the best one-year, fixed-rate deal on cash Isas comes from Coventry BS at 3.25 pc. the rate is fixed until May 31 next year, but you can only put £5,100 into the account. the deal is not available to those who want to put in less than the maximum cash Isa allowance for this tax year.

Northern Rock pays 3 pc on its Isa Breaker fixed until May 15 next year - but once the fixed rate deal runs out, your account becomes a 30 Day Isa, where the rate is currently just 1.8 pc and you have to give a month's notice to withdraw your money.

Banks continue to pay less to Isa savers than on their taxable fixed rate bonds. halifax pays 3.25 pc on its two-year, fixed-rate cash Isa, but a higher 3.55 pc before tax on its taxable fixed rate bond.

Northern Rock pays 2.9 pc on its taxable bond, but 2.75 pc on its one-year fixed rate Isa. even worse, Lloyds tSB pays as little as 2.5 pc on its two-year, fixed-rate cash Isa but 3.5 pc before tax - worth 2.8 pc after tax - to savers willing to tie their money up for two years in its fixed rate bond.

The top two-year fixed cash Isa comes from Santander and Coventry BS at 3.5 pc against 3.7 pc from ICICI Bank on its two-year fixed taxable bond. You cannot transfer past year's cash Isa money into the Coventry account.