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Lawrence Gold's money masterclass
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Money worries? It’s time to stop feeling down – Bank of Mum & Dad’s intrepid financial adviser Lawrence Gold is here to help. In the first of his weekly six-part series, Lawrence uncovers the truth about our debt mountain – and how you can deal with it
Did you know that the amount we owe to our banks has now just overtaken the UK’s total economic output? Our total personal debt stood at over £1.345trn at the end of June 2007 – that’s a year-on-year increase of more than 10%.
Our national economic output, meanwhile, is just £1.33trn – and that means we’re spending more than we earn. Britain’s personal debt increases by £1m every four minutes – does that statistic scare you? It probably should.
So, what are the danger signs if you’re worried about getting caught out in this spiralling level of debt? Here are a few questions for you…
dealing with debt
When a statement arrives – do you just hope it goes away and don’t open it?
Do you only repay the minimum on your credit card each month – or do you have trouble paying even that?
Are you relying on bonuses or that pay rise to pay your bills?
Are you asking family or friends for cash handouts? And how often do you ask?
Are you struggling to repay your essential bills such as rent/mortgage or council tax?
Are you switching credit cards and paying one off on the others?
If this is you, your spending is spiralling. Next, a few simple first steps to help you back on the road to controlling your finances.
