thedebtblog.co.uk

The spike in inflation was higher from July to August; 4.4 per cent to 4.7 per cent and the Bank of England say things will get worse before there is any sign of a fall.

Mervyn King the Bank of England governor is blaming high food and energy prices for the increases in inflation over the last 12 months.

The office for National Statistics said that rising energy prices were compounded last month as most of the big energy companies increased their prices. Believe it or not they’re even blaming the rising cost of pizzas and fruit for the increase in inflation figures!

Mr King must write to the Chancellor and explain why inflation is above the government’s 2 per cent target and he says that ‘the expected peak in inflation later this year us now likely to be significantly higher than anticipated.’ Also, rather unfortunately for most of us, that inflation is likely to remain above the 2 per cent target well into 2009…

How to Deal with Debt Stress

In the present fast sedentary lifestyle, debt stress is a very common phenomenon. It can affect almost anyone, from a college student, to any employed person; the advent of the credit card has brought its side effect; stress. In stress both a person’s emotional and social life can be hampered followed by physical discomforts.

The symptoms of stress in a persons life are very obvious, irritability, forgetfulness, lack of concentration. Physically it can get take it’s toll in the form of migraine attacks, and in more recent times it has been the reason for many modern day suicides. People who find it difficult to manage their finances and give in to peer pressure unfortunately fall into the debt trap.

Falling into debt, missing payments or even being declared bankrupt can be shameful and people think this is seen as a failure in life. More often than not most of us prefer to keep debt problems a secret from others but good communication can be the starting point to solving all your debt problems. It is always advisable to speak about your debt problems to someone, be it partner or sibling and more importantly you need to communicate with the bank or whatever companies you owe money to. Simply burying your head in the sand and ignoring your debts will not make them go away.
 
Managin your money is very essential part of modern day life, and you should set priorities by working to a budget and save accordingly. It does not mean that you should stop living life but be realistic about what you can and cannot afford. If saving a particular amount per month can be made into a habit then brisk spending can be avoided, and so is the stress associated with it. Open a savings account and set up a monthly direct debit from your monthly salary per can also be a wise decision because the money is gone before you notice it.

Credit card stress is extremely harmful because most people do not feel the need to regulate their spending once it starts. It’s only when the monthly bill arrives that people realise they cannot pay back the debts they owe. Fixing the credit limit on a credit card is also a good way to avoid over spending and avoid debt stress.

If you’re struggling to afford payments on a credit card debt or a loan debt, maybe you’ve fallen behind with your mortgage payments? You should speak to a professional adviser as soon as possible, contact your local citizens advice bureaux http://www.citizensadvice.org.uk/

Any mature individual will always try to keep his or her finances in control. However there are some who cannot; and there are some very common tell tale signs which imply that a person may be on the verge of having a debt problem. Keeping it to yourself and from loved ones is not a good idea.

Even when money is managed properly after undergoing a minor debt management problem, if you are still using a large chunk of your salary to pay off debts, you should think about reducing this debt ASAP.

The most frequent signs of debt are bounced cheques or overdraft charges from your bank, one or more of your credit card(s) is always near or over the credit limit, there is nearly zero balance in your savings account; Paying bills late, paying more and more late fines, making still more purchases with a credit card; even though the last credit card bill has not been paid, are all signs of a serious debt problem.

If you are in debt hidding your financial situation from friends and family, is not a good idea. If your struggling to cope with debt you should take positive action and try to take the first steps towards financial freedom. Do not bury your head in the sand.

Making only the minimum payment required on credit cards, to spending more than you’re earning; hoping to mange everything with the help of loans, and not keeping a track as to how much is spent and where it is spent are sure signs of financial debt. You might also be hiding bills from your spouse and arguing over financial matters, maybe you’ve been refused credit recently?

If you are using any form of credit, from credit cards to personal loans, maybe even a secured loan, to pay for food and petrol becuase you have to make ends meet every month you should seek professional debt management advice.

In the UK you can visit your local Citizens Advice Bureaux and get FREE debt management help and advice. Look in the phone bool or Yellow Pages for a telephone number and make a start on tackling your debt TODAY.