Facebook does not make you famous!

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Well, it could make you famous if you have a post that goes viral, but the chances of that are gazillions to one.

My apologies for being quiet for a while, but I’ve had 3 trips back to England in 3 months. I had to put a lot of planning and organisation into these trips, I got back from the last trip a week ago and even now I feel like I could sleep for a month. At least I won’t be travelling again until the autumn, when I go back to England for good. It’s been great to spend time in various places in continental Europe, but there’s no place like home.

Recently I’ve been watching the BBC programme Shop Well for Less; if you’ve not seen it, the two presenters put overspending families on a week or fortnight of austerity in order to help them to live to a budget that is within their means. Having lived frugally for nearly 10 years now, I am shocked by the families’ spending habits.

One woman on the programme stuck in my mind, she is a beauty therapist and she said that she couldn’t possibly wear the same outfit twice. She explained this by saying that she has her photo taken all the time when she’s out, and so many of them end up on social media, she couldn’t possibly be seen wearing the same outfit twice, she has a reputation to live up to…

Whaaat?? It’s Facebook, not the national press!

I’ve had a great time in England catching up with my friends, one of whom is an old school friend who beats me hands down at super-frugality. We were talking about this programme and I mentioned this ‘different outfits’ comment, and she said “I know loads of women like that”.

So, this was not an isolated example on Shop Well for Less. I explore the effect of society on spending habits in my book, especially of celebrity culture, but even after all my research I was floored at how deeply ingrained the mimicry of celebrities’ lifestyles seems to be in the lives of ordinary people with national average salaries. Having grown up in the 70s (and I’m glad I did) I have seen the rise of celebrity culture as a phenomenon. Of course we admired our favourite pop stars and actors back then, but talentless people generally didn’t get a claim to fame and we never felt the urge or pressure to rush out to buy designer clothes and accessories. It was either Chelsea Girl or the market stalls.

I like a quiet life anyway with my feet firmly on the ground, and I am more interested in the flesh and blood people around me and their welfare than I am in celluloid celebrities. I really don’t get the desire for fame, don’t people realise that it can be hell? If you’re not happy with your life now, having loads of money to buy shiny trinkets will not make you happy. Having a great deal of intrusion into your private life certainly won’t make you happy either.

Finally, I think that everyone likes to hear about dirt being dished on celebrities. (It’s called schadenfreude.) That’s what tabloid journalists are looking for all the time; do you remember the woman in Worcester who was exposed as a lottery cheat? The press really had their knives out for her.

Be careful what you wish for…

“Would you like a receipt?” Of course I would!

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I’ve just been back to England for 4 days, the first trip back for just over a year. Little has changed; I spotted a couple of road improvements, a couple of building sites now have pristine buildings on them, BHS is no more and a few shops have changed names/ownership but it looks pretty much the same. My friends are still as wonderful as ever.

It’s always an opportunity to stock up on things that I can’t get across the Channel so I save up and have a spree. This takes me into several shops and one thing that I noticed at many major retailers was that I was always asked:

“Would you like a receipt?”

Huh? What’s that all about? Of course I want a receipt!

It happened so often that I thought that it’s either a move designed to reduce paper waste (laudable), or a step towards digital receipts. I recently read though about contactless card payments – which I refuse to use – that they don’t show up even as pending transactions on your bank account for a few days.

So… if you’re not getting receipts, how can you keep track of your spending? Just how many people carry a notebook and record every expense as it arises? Is this why a third of young people are too scared to look at their bank balance? Also, if you don’t have a receipt for your goods, how can you prove that you bought them if you’re challenged by a security guard? Do they now have CCTV everywhere in a shop to record everyone’s payment as proof they’re not a shoplifter?

Yes please, gimme my receipt. I’m going to take my fistful of paper receipts for my CASH payments back home, even the one for 25p, and I’m going to record every expense that I made through the day so that I can keep track of my finances. No-one’s going to accuse me of being a thief either, as I can prove my purchases.

How to avoid debt consolidation disasters

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Looking back, some of the worst decisions that I made were to consolidate my debts when they started to spiral out of control. I did that quite a few times before everything fell apart and I was forced to get rid of my debts once and for all. On the face of it, it’s a sensible move – to put your total debt into one loan with a much lower interest rate and pay it off.

Then you’re debt-free, yay!

All well and good, but my best intentions fell by the wayside and I never followed it through to the logical conclusion. I did little to change my spending habits; if I saw something I liked, I bought it. If a holiday took my fancy, I’d book it. I cut up my cards whenever I consolidated my debts but didn’t cancel them. Once the expiry date came round, I would get a new card through the post. I would usually be feeling the pinch because my bank account struggled to cope with all my impulse buys, so the round of overspending on credit started again. I even consolidated twice with secured loans against the house; what a dumb thing to do.

I learned the hard way – if you’re going to get rid of debt this way, you have to see it through to the end!

If you consolidate your debts, don’t take on ANY more debt until the loan is paid in full.

One option that avoids an interest-paying consolidation loan is to consider transferring to a 0% interest credit card and having a blitz on the balance to repay the whole sum as soon as possible. This is a much less expensive option than a consolidation loan.

Debt consolidation can be a good thing to do in some cases, but not all. You really need to be disciplined to avoid entering into any further credit until the consolidation loan is paid off. If you are going to do this:

  1. Before you approach lenders, get advice from a non-profit making organisation such as StepChange or the Money Advice Service. Consolidation may not be the right choice for you.
  2. Don’t take out a secured loan against your home – it could put your home at risk if you become unable to keep up the repayments.
  3. Pay off your credit and store cards with the loan and cancel the accounts straight away.
  4. Prepare a budget and stick to it.
  5. Rethink your spending; only buy things that you need, and set a limit for occasional treats.
  6. Get out of the habit of impulse buying. You can admire something without possessing it.
  7. Once the loan has finished, put the amount of the loan repayment that you’ve become used to paying into a savings account so that you can buy things that you need without resorting to credit.
Disease Called Debt

Sale time! Get Out of Debt Hell reduced for one week on Amazon

Get Out of Debt Hell_eBook

It’s January sale time!

A lot of us are on a tight budget this month, so I am running a Kindle Countdown deal for one week on my ebook Get Out of Debt Hell, and the paperback version will also be reduced for one week too on UK and US Amazon.

UK Amazonebook, 99p and paperback £5.99

US Amazonebook, $1.99 and paperback $7.49

Offer runs from Thursday 12 January to Wednesday 18 January. Grab a bargain whilst it lasts!

The Diminishing Memory of Destitution (and what I learnt from my grandma)

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Family in Bethnal Green, 1900

“No man is an island”

This is a fairly long post as I have a correlation between debt and poverty at the end that I am trying to back up with evidence, so grab a cuppa and get comfy.

I propose in my book that we need a deeper and more critical look at how society and culture have a subconscious effect on how we feel in an ever-increasing consumer society, and that examining this is vital if we are going to tackle the underlying causes of our debt problems. One of those aspects that I briefly discuss in the book is how the memory of abject poverty in Britain is diminishing and I’ll explore that here in more detail, and how it relates to the growing debt problem in Britain.

I’d like to be clear, I am not dismissive of current poverty in Britain; it certainly does exist and there is also an unacceptable level of homelessness, and it is a miserable state to be trapped in poverty. There is a distinction though between poverty and destitution. Destitution is poverty where you have absolutely nothing to fall back on, and there was a time where there was no state help and when I was younger I heard first-hand accounts of this time.

Most of us haven’t experienced a time when there wasn’t a safety net

The system of National Insurance was introduced in Britain in 1911, providing free medical treatment and 26 weeks’ sick pay. Prior to that, old age pensions were introduced in 1908 for the over 70s and Labour Exchanges were set up in 1909 to help the unemployed to find work. It wasn’t until after the Second World War that National Insurance would also provide unemployment benefit.

Prior to these welfare benefits the main option for the destitute was the workhouse, though charitable institutions sometimes helped people in desperate situations. This was still the moralistic age where the ‘deserving poor’ were helped however and if there was any hint of perceived idleness or immorality apparent to the charity, help could be refused.

What I learnt from my grandma

My gran, born in 1901, was one of 10 children in a poor household living in a small 3 bed terraced house. Her mother also took in and raised a local child who had been orphaned so that the child wouldn’t have to go into the workhouse or some other institution. My great-grandfather was a factory worker, so he didn’t earn a huge wage and his wife would also do anything possible to bring in money and to feed the family on a tight budget, as well as having a football team of children to raise. Although my great-grandmother was illiterate, she was a proficient midwife and well-known for this in the area, having learnt midwifery from her mother. She would also lay out the dead for burial, another skill learnt from her family; the local area was poor and its people were not able to afford the fees of a doctor or a hospital to deliver a baby or an undertaker to prepare the dead for burial. My great-grandmother’s modest fees were affordable.

The children would also bring in money in various ways from a young age by doing odd jobs such as deliveries and their earnings were handed straight to their parents. They were handed back a farthing, ha’penny or a penny occasionally for treats such as sweets. Everyone, young and old, pulled together to bring in money and it was spent sparingly, and the reason for this was the horror and stigma of the workhouse.

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Lambeth Workhouse, men’s dining room

I heard from my gran just how terrified people were of the workhouse; it was the ultimate shame for the poor, but the choice was the workhouse or starve. In my gran’s youth, the workhouse had become a more benevolent institution than it had been in the past as compassion for the poor was increasing. It had also become mainly a place to house the elderly, orphans and people with physical and mental disabilities who had no-one to look after them. In an appallingly insensitive move, the city’s workhouse building later became a geriatric hospital and the elderly hated being admitted there; in their minds, they were ‘going in the workhouse’ and my poor great-grandma spent her last days in that hospital too. On the other branch of my family I discovered that my great-great-grandfather had died in his old age in a workhouse. This came as a complete surprise to the older members of my family; it had never been discussed, such was the shame and stigma attached to it.

Many people today look upon the thought of themselves claiming state benefits with horror and shame, but I don’t think that the depth of the stigma is anywhere near as intense as the fear of the workhouse over 100 years ago. At least if you claim benefits you can lead a fairly normal life, albeit on a very low income, and make your own decisions. You don’t have to move into a regimented institution where you have to wear a uniform, eat the most basic food, perform monotonous work, live by a strict timetable and be segregated by gender. Sounds like a prison, doesn’t it?

Britain at war

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People in Britain went through the Second World War with some hardships such as rationing of food, petrol and clothing, also people living in cities would be at risk of bombing at night. My parents told me about uncomfortable, damp and dark nights spent in their air raid shelters in the back garden, sometimes spending several hours in there until the all-clear sirens sounded.

The nation pulled together and most did their bit to keep a semblance of normal life. Flower beds and lawns were turned over to grow vegetables and there was a ‘make do and mend’ attitude to clothing and other essentials. Britain also benefited from imports from countries such as the USA and Canada that included food imports, which came at a high cost; 2,825 merchant ships were sunk by U-Boats. For those who managed to escape the worst of the bombing they were adequately fed and clothed and it is said that the reduced diet made the health of the nation the best it has ever been, but the situation across the Channel was much worse.

A case study of Italy – abject poverty through war

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Families left homeless on the street after the bombing of Milan

I’ve chosen Italy as it’s a country that I know well, I used to visit friends there in the early 1980s and I’ve also had the chance to visit a few times again to see friends more recently. I heard about people’s wartime experiences during my earlier visits and also I am grateful to my dear friend Paola Laghi for sharing her parents’ reminiscences.

Rural areas in Italy were already very poor before the war, which is the main reason why there was much emigration not only to the United States but also to many countries worldwide. In the later years of the war, hardship increased considerably and food was scarce; cities and towns were frequently bombed as the Allied forces attempted to defeat the Axis forces. I once visited a family in a rural town and we ate roast chestnuts one evening. The lady of the house told me that roast chestnuts reminded her of the war, as there were often times when she would get home from school and that was all there was to eat and nothing else – chestnuts that had been gathered from the local woods. The winter of 1944 was particularly severe and the people struggled to survive with a lack of food and fuel; 1944 also saw natural disasters such as the explosion of Mount Vesuvius and earthquakes.

Many Italian men and women fought back bravely against the Fascists, even though the death penalty existed not only for being a partisan but also for anyone found to be helping or giving refuge to partisans, and also for aiding escaped Allied prisoners of war.

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Italian partisans in the winter of 1944

Paola’s family lived in the region of Emilia-Romagna in an area that suffered from bombing attacks and her aunt died from gangrene after she lost a leg in a bombing raid. The family lived in a 2-roomed house and the children shared single beds, though Paola’s mum and her sister eventually went to stay with family friends near Lake Como in the north for safety. Towards the end of the war and in the aftermath many people had little money and they managed to survive by bartering goods and services. Paola’s grandmother was an excellent seamstress and obtained food and other necessities by paying with clothes that she had made. After the war, Paola’s parents married in 1950 and lived in an old, tiny house and the door had a wide gap at the bottom that the landlord refused to fix, so they had to stuff a sack in the gap to keep out the worst of the winter weather. I’ve experienced Italian winters, it’s not always hot and sunny as some believe and its winters can be very severe. Her mother had to work even when she had her first child, who would play in a back room whilst she worked.

Paola’s parents managed to find work in England as a driver/handyman and housekeeper/cook; at that time it was fashionable amongst the well-to-do to employ an Italian cook. They were struck by the relative prosperity of England, even though rationing still continued and to Britons it was a time of hardship – but to Paola’s parents, it was paradise. By the time they emigrated they had a child but they were not allowed to bring him with them, and it would be five years before they were permanently reunited as a family; such was the sacrifice they made in order to get themselves financially secure. Paola says that when talking about these years her mother would say ‘”non saprete mai quanto siete fortunate” (you’ll never know how lucky you are).

How this relates to personal debt problems

On one of my early visits to Italy in the 1980s, I met a young engaged couple and they talked about getting a home, but they hadn’t saved up enough yet. I asked if mortgages were easy to obtain, and they were horrified! They said that you should never, ever borrow money, not even to buy a house and I later found out that this was a common sentiment. This was at a time when Britain’s credit boom was taking off and personal debt in Britain would see an ever-increasing rise every year to staggering levels.

Sadly, this is changing. Whilst many Italians still prefer the use of cash and are often very prudent with their money, card use and borrowing are increasing and consumerism is on the rise. Credit card companies are targeting countries such as Italy that have low card use with a blitz of advertising. Gone are the days when you would see many battered old Fiats on the road; you still see some around, but there is a predominant desire for a brand new car. Italy is starting to feel like Britain in the 1980s in this respect.

There appears to be a statistical correlation of personal debt and abject poverty within living memory. Of the EU countries with the biggest levels of personal debt, six of the top ten were largely unaffected by occupation, widespread destruction of property and extreme poverty during the war. Britain is the 7th most indebted and Italy is at number 16. It’s interesting to see that many of the countries with the least personal debt are in eastern Europe, an area that suffered great deprivation and destruction in the war.

Maybe that’s why our debt problem is such a huge problem in Britain – we no longer have a paralysing fear of destitution. It could be that it is in our mindset that even if we don’t have a home or a job, the state will help us out and there is no danger of starvation. Nevertheless, reduced circumstances lead to a miserable life so it is a worthy education to learn about the prudence of our ancestors and how they coped with a level of poverty that is unimaginable to us today.

Photo credits:

PLA Collection/Museum of London

http://www.vauxhallcivicsociety.org.uk/history/lambeth-workhouse/

http://www.boltonswar.org.uk/pr-recycle-06.htm

http://www.comune.cinisello-balsamo.mi.it/pietre/spip.php?article654

http://www.treccani.it/scuola/lezioni/storia/resistenza.html

How did I get into debt when I hate shopping? 

 

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My idea of hell.

Shopaholics – they’re women who buy too many clothes and shoes, right? And those are the people who get into debt?

Well, that wasn’t true in my case. I hate clothes and shoes shopping, maybe because of distant memories of my mother’s hand firmly clutching mine, to prevent my escape, as we trudged around Marks and Spencer looking at everything in the store (so it seemed). It didn’t help in later years that I never had any sense of style; I could buy the most gorgeous clothes and they would make me look like a sack of potatoes. To rub it in even more, my best friend could have worn hessian sacking and look fantastic. She had style oozing out of every pore.

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I was never destined to be a fashion icon.

I don’t like crowds either, shops attract too many people for my liking. Put me on a 10 mile hike across a desolate moor and I’m in heaven.

Looking back at my debt-ridden years, I find it hard to think where the money went. I think that the answer is that I loved knowledge and experiences – I’m bored the second I walk into a clothes shop, but put me in a bookshop and I’m happy as a pig in clover. If I wanted a book, I’d buy it. I loved travelling; can’t afford a holiday, Jen? Stick it on the plastic! Heavens knows how many courses, workshops and seminars I attended over the years and some of those weren’t cheap.

I think I can say that at least I broadened my mind, even though it put me into debt. At least I have something to show for it, rather than having spent a lot of money on things that are now landfill. That said, if I could turn back the clock I would have used the library more, not jumped at every single course that took my fancy on a whim and had more budget holidays. I wouldn’t wish debt problems on my worst enemy, it was the cause of the darkest and most traumatic period of my life.

The truth is, people get into debt for a myriad of reasons and it’s not always about excessive shopping. Men are just as likely to overspend as women, sometimes on different things like cars, sport and nights out with the lads. The people on the lowest incomes in Britain struggle to obtain basic necessities, and then the doorstep lender comes along – and before you know it, that small loan has turned into a massive debt with extortionate interest.

It doesn’t really matter how you got into debt; it’s all in the past now, but I know from experience that it adds a great burden to your life, harms your mental and emotional well being and can cause problems in your relationships. An unexpected calamity in your life can turn the problem into a nightmare, so if you haven’t reached that point yet – do something about it now and start the path to debt freedom.

Get Out of Debt Hell – on sale 9 July on Amazon.

Photo credits:

http://dailycupofjojo.blogspot.com2014/11/beat-black-black-friday-madness.html

http://thehistoryanorak.blogspot.com/2015/06/the-history-of-scarecrow.html, attributed to the Daily Telegraph

My new book, Get Out of Debt Hell

 

Now available on all Amazon sites as ebook and paperback.

Get Out of Debt Hell_eBook

“How could I have been so stupid?”

That was my overwhelming thought when reflecting on too many years of living on the edge with overspending and juggling credit payments. It all collapsed when an unexpected crisis happened in my life. This is a familiar story for many people, and I will help to guide you out of the debt problems that have blighted your life with practical solutions and ways to save money. I will help you to think more deeply about what led you into overspending, by casting a critical eye on the insecurities in modern British life and the subtle and insidious forces that seduce customers into spending on things that they don’t need. This is a call to everyone struggling with debt to break free of this hell – becoming debt-free will liberate you, improve your life and you will never look back. No matter how much you owe, you can do it!

It is a book written from a British perspective with a view on life and resources for debt help within Britain, but I’m sure that readers outside Britain will find the principles to be universal. Many countries are also experiencing the insecurities and mayhem that are currently happening in Britain; they are all being blighted by global trends.

There are many books on debt help, so why is this one different?

Well, many are concerned with the ‘nuts and bolts’ of budgeting, cutting back on your expenditure and working out a solution with your creditors. Some also provide excellent advice for the emotional difficulty of facing your debt crisis and overspending habits.

What I look at in my book is the influences in society and culture that have led to overspending habits, as it is difficult to address your emotional responses if you don’t have a clear idea of what has led you to them in the first place. Advertising methods, celebrity culture, peer pressure and the triumph of emotion over reason all conspire to induce you to desire what you can’t afford. Once you understand how these forces work, it is much easier to switch off from them. I hope that this will help you to think more deeply about perspectives that might not have occurred to you before and to develop your own ideas and thoughts.

In addition you will find lots of practical advice to help you start to become debt-free, ways to save money and there is a *bonus free recipe* too!