Another Casualty of Human Nature – Every Man and Woman for Themselves.

As this continues we have started to see (and I suspect will continue to see) the true nature of mankind, the underlying motivation in any society would appear to be one of greed, and at a time like this it seems incredulous to me that as a race we appear to still be looking out for ourselves, companies rushing to find ways around the restricted opening, looking to still sell as much as they can to a population that have nowhere else to go right now, here’s the thing, if there is nobody left to spend it then money is wallpaper and nothing else! you see money and wealth are not mutually exclusive, although we are taught this through countless morons on social media, making money from using whatever they think they can sell, and of course the powers that be want us to equate the two as equal as well as it serves their purpose, after all if you have lots of money then you are wealthy right? no, No and F**K NO,

It is not only perfectly possible to have money and be broke as well as have no money and be wealthy and in fact in most cases that is the status quo, think I am talking rubbish? think about it, how many people living lavish lifestyles actually have money? the vast majority of them are living with eye watering debt and yet they live lives of personal Jets, Yachts, huge houses and extravagant vacations either to elite destinations or in some cases destinations they own, and the reality of it, none of it is theirs, they have become what the Mafia refer to as “A good earner” that is to say their debts are so huge that they never repay a single cent or penny of the original sum, simply the interest they have become essentially an investment by the bank and a dividend payment at the end of each month, if they screw up then they lose all the loaned goods and lifestyle and the bank moves onto the next entrepreneur.

During this time there will be job cuts, people will lose their livelihoods due to the chaos that is going on around us, and they will find it difficult if not impossible to find another one in a short space of time, after all they can’t even leave the house to attend an interview!

Stuck in a mountain of debt this is where the lesson will be learned that human nature is to cut loose anything that is no longer profitable and ignore it till it goes away.

What then ?

Well the first instinct is the emotional response that sends most people into a pit of either saturated fat or alcohol self pity, but there is nothing to stop you from taking action and becoming the top of the pile, hell if you make enough noise the people that turned their backs on you will come running again you’ll see, whatever you did, whatever your shape of cog within the machine of the larger organisation is your way to work yourself back up the ladder, you can start a business, because now you have nothing to lose, if you are already in debt and you have been cut loose by a company trying to save money in this time when we have a global need for stability then you will eventually lose what you have anyway, so if all is lost then why not gamble what you don’t have on a future a million times as bright as the one you have now?

Finally….

I want to wish everybody around the world the best of luck with this because that is what we are going to need, my whole point is that although your landscape may be changing every day and seeming to just get darker, with the right motivation you can turn the tables on the establishment and secure your own seat at the top, there is shameless display of profit over human life evident in most quarters of the globe, maybe your empire will change that and value your fellow human.

Building a better 2020

So we are entering the final months of 2019, and I can bet that for the vast majority of us we are no further forward than we were this time last year and for some of us we may actually be worse off, and that will be further exacerbated by the up coming festive season and the pressure from both the media and advertisers as well as the personal pressure you put on yourself to spend money on presents and entertainment for your children or yourselves, often on credit cards or over-draughts or worse still loans, this time of year is really a hunting ground for capitalists and vultures looking to tie you into agreements that mean next year you will have to come back for more.

It is not our fault, advertisers and social media put us in positions that we simply cannot escape, and we borrow in order to “keep up” with the neighbours or our work colleagues be it through our children’s activities or through the car on the driveway, holidays, clothes even sports and hobbies all say something about us and our ability to pay out money, this is all well and good but what happens when you can no longer work? I don’t mean if something were to happen to you right now, more the inevitable end, Retirement we are all heading there and most of us with nothing planned to see us through.

I would like to push for another type of new years resolution, it will be something we are going to achieve in our house, that is instead of the standard “no chocolate” or “go back to the gym” both of which normally only last a couple of months before we find ourselves sitting on the couch eating chocolate while we should be at the gym, we are going to be working toward reducing debt and becoming more financially intelligent, after all how can you expect to master something without knowing how it works ?

Some startling statistics are that the average UK debt is £31k per adult! that is shocking and although I don’t know anybody quite there I am aware of people near that threshold, when you put that against the average UK household income of £28k the gap is clear to see, and of course as this comprised of borrowed money the interest is also staggering, an average of £967 in interest alone paid last year for every Brit.

All economies run on the least paid individuals, this is the case universally, as these economies are propped up on debt, the circle is vicious and relentless and designed to make it difficult to break, but not impossible.

Firstly bear this in mind, there are debt charities and advisories that offer free and payed advice to people struggling with debt, but this advice in my opinion is flawed beyond belief, the basic advice is centred around either declaring bankruptcy or entering into a sponsored agreement where you declare to the world that you are nearly bankrupt and asking for them to freeze all your accounts and let you pay off the balances, but let’s think that through for a moment,

  • Bankruptcy – Stays on your credit file for 6 years, and will affect your credit rating for much much longer, so let’s say that you have reached the point where you believe that is an option, you would normally be around 30 years old and may possibly have a mortgage, so you would need to sell the house and use the equity to repay debtors, everybody is made aware of the Bankruptcy as it is public information, and it will have to be declared when you apply for housing with private landlords, any credit over the value of £500 and could remain for longer based on how long it takes to become discharged, at the very best based on a 30 year old this means you are 36 when discharged and paying through the nose for credit while you try and rebuild a credit rating, then at around 40 you are able to start re-building your life and possibly look to buy a home again, all the while having to declare that you have been a bankrupt and paying higher interest for the rest of your life, this doesn’t sound like a good option to me.
  • IVA – Individual voluntary arrangement, this is a fixed term of between 60 and 72 months (so 5 years at best) possibly 6 and the conditions are no more relaxed, you will still have to sell any assets you have to pay into the IVA and then you are still the same age when you start to re-build your life.

And of course you could just bury your head in the sand and do nothing, but that leads to all manner of issues and most of these will ironically cost you more money because you are always viewed as not wanting to pay as opposed to not being able to pay and this is despite the fact that you haven’t got enough money for the initial debt.

The first steps in my opinion are to understand the nature of the debt, how much actually is it ? how much is the interest and how much am I paying off the capital ? often these questions are not asked and people simply start at the least amount and try to pay that off while struggling to keep up the payments on a debt that is costing them a fortune in interest every month.

Work out how much your utilities actually cost, it is surprising how many times we just simply pay the regular estimated payment without question and then are excited when the company gets in touch to tell us that as we have overpaid we can either claim the money back or allow it to be credited to our next bill (most companies assume this by default) under these circumstances we view this as good will on the part of the company but actually that money could have been better spent on a debt reduction rather than sitting in an energy companies account gaining interest.

Not everybody of course will be affected by the previous examples but I guarantee that if you are reading this you are either trying to make money to be more comfortable or you are stuck in a financial rut and are desperately trying to get out, what I am trying to illustrate is that lack of knowledge is often the most costly mistake we make, when we look at people that are financially savvy what we are actually seeing is people that have worked out how to not give all their money away, they look for value in expenditure and they look for return on debt, if you have a house that provides more rental income than the mortgage outgoing then this is good debt, if you consume any service or utility make sure that you are only paying for what you take, and never take anybodies word as gospel always check yourself where possible so you can say with certainty that you know how much you are getting charged and why.

Conclusion

As human beings we are forces of nature, we have the proven ability to change the world and explore other worlds, we can create our own futures, and deal with our pasts, capable of great acts of kindness and huge atrocity the human drive and spirit is the most voracious and uncompromising force known to man.

Make a list of every thing that is keeping you awake at night and worrying you in the morning, everything that makes you snap at family and friends because you are pre-occupied when they speak to you and realise that you do have the power to change it, end the cycle of debt by not taking anymore out, pay off credit cards quickly and realise that if you can’t do that then you can’t afford the lifestyle you are leading, but if you put that lifestyle to one side for a single year you may very well be able to afford a much better one, and not pay somebody else for the privilege.

Obviously I am not a financial adviser and any situation should be looked at on an individual basis to determine the correct course of action, but you cannot lose if you find a way to pay less interest to lenders, and borrow money or goods on inflated interest because we haven’t got a “perfect credit score”.