The financial website Uswitch has found that five million people, or one in 10 adults spend more than they earn on a monthly basis.The website said a further fifth of adults have no spare money left at the end of the month. It goes on to report that over half of those plug the gap with overdrafts and credit cards.
The crazy thing about getting yourself into debt is how much it actually costs. The whole world is geared up to make money from you and being in debt is no different. First there are bank charges, then comes the interest charges, add to that higher rate mortgage rates because you are considered a bad lending risk and then they top it all off with late penalty fees. Hopefully the bank charges will be reduced fairly soon, but in my opinion the banks will simply move those charges to other goods and services. The banks are the casinos of the high street world, you can play them but the house always wins in the end. I protest every time I think about that Monopoly Card "Bank Error in Your Favour Collect £200 Pounds", from my experience there is no such thing.
What is vitally important to learn if you are in debt or have ever been in debt that no matter how you choose to get out of debt, be it bankruptcy, an IVA, selling your house and downsizing, none of these measures will be permanent unless you address your financial education. Once you can get back in control of your finances you will be the one earning interest from the banks, investing for your future and being stress free knowing you are on your way to a place few people ever reach.
It all starts with using the FREE to follow Control Freak tips on the website and blog throughout the Pay Off Your Mortgage Challenge.
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