There is no money!
The recent change of government in the UK has exposed some serious financial problems which are going to become real problems for the ordinary people in the UK!
The politics involved are not for this website, but the consequences for the UK citizins certainly are!
The government has to reduce the national debt and it will take many years to do this. We, the people, are the ones who are going to have a difficult time for quite a few years with increasing prices in the shops, increasing costs for services as well as reduced services, and increasing taxes.
One major consequence is the proposed increasing of the VAT rate from 17.5% to 20%, planned to come into effect in January 2010. The majority of prices will go up by at least 2.5% and retailers may add their own increases at the same time.
Some foods will now become more expensive because of the VAT increases although all basic foods and certain non-food items are VAT free. But be aware, the majority of the items we shop for will increase becasue of the higher VAT.
We have a growing division in our society now. Those people with a good job and those people with cash in the bank will mostly be unaffected. They will still be able to afford the products and services they want
But those who have lost their jobs, or who are on low incomes or benefits or have low pensions to live on, are the people who are going to struggle to survive. It will not be easy to avoid falling behind with bills such as mortgages, debts, credit cards and rents.
Coping in difficult times
There is not an easy answer on the best way to cope with money difficulties, every person and every situation is different.
However there are people who do not know how to begin to sort out their problems or know what they can do to help themselves! Some people really struggle to manage their finances.
The first obvious step is for people to take control of their finances so that they can cope with what is happening around them. Their bank account is critical in this. It does not help anyone to get deeper into debt or to have to pay penalties to banks and credit card companies.
Identity Theft
This is seen as a modern day scourge and it is definately becoming a problem. Thieves can use information about you to build a financial profile of you. They are then able to buy products, borrow money and incur other debts in your name. You then have the problem of proving that it was not you on a wild spending spree!
Struggling to make ends meet?
Many people, particularly families and the elderly and those with low, fixed incomes, are struggling to pay the bills.
Those who are living off credit should act immediately. This is a pretty obvious statement, but so many people simply ignore their problems. They get out of their depth and become scared to act. Their problems escalate and the whole situation gets worse. People must make the effort and start to help themselves and their families.
If they need professional help then they must go to the appropriate, qualified professionals. There really is nothing they can do on their own.
But for most people there are some steps that they can take to manage their lives, even if they need professional help with various aspects of these.
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