Let’s go crazy….

As I’m sure Olivia Buck will be delighted to hear, Barclays today announced a relaxation of their unauthorised borrowing policy:

Barclays First to Reduce Overdraft Fees

Effectively, Barclays are prepared to supply you with a £1500 buffer beyond your agreed overdraft (if you have one), which they will charge you £22 to use, and allow you five days grace to clear. This buffer will be known as a ‘personal reserve’.

Certainly an improvement on the old ‘go one penny over the line and we’ll ruin your life’ regime.

However, I have a concern.

What with so many consumers forced to cut up credit cards, swap Liberty for Lidl and turn down their thermostats due to the precarious economical climate, won’t people view this personal reserve as free credit?

There’s certainly a psychological argument. Having been deprived of disposable income for some time, there will surely be an urge within a number of these new Barclays customers to go on the mother of all spending sprees.

The net result or consequences of this spending would be akin to loading up a credit card. Another possible avenue to help get you through these turbulent times blocked off by one’s own irrational need to consume.

So, will these measures work as a handy parachute to those who perennially slip into the red, or will they just add to the economical negativity blighting this country (and the rest of the world) in the long term?

  Women being cock-a-hoop

Friday 30th May, 2008 - £8,920.19 in debt…

Look at that up there! That amount of debt! Under the £9,000 mark – WOO! I am literally cock-a –hoop. Yes, literally.

And I’m so proud of myself too. When my tax rebate arrived in my bank account yesterday, my first thought wasn’t “shoes!” or “Milkybars!” or anything deranged at all – it was “Now I can pay that amount off my Barclaycard – I can’t wait!” and I did it straight away.

This is a huge turnaround for me - a couple of months ago, I’d have gone out shopping with that money, but my attitude to money has completely changed and I’ll tell you why.

Originally I thought that writing this blog would be a good way to get tips and ideas about paying off my debt. And that’s exactly what has happened – thanks very much for all the help, by the way – but it’s had another, unexpected benefit…

Because I’m keeping track of my debt and writing about it, I’m constantly thinking about money. And I mean constantly: thinking about how I can save a couple of quid on a cinema ticket, how I can make a couple of quid on Ebay, and how I can roll around in piles of cash once I’ve paid my cards off because every penny I make will be MINE and I can goddamn do what I want with it. So there.

Yes, the rumours are true: paying off even a little bit of your debt is one of the best feelings in the world. Getting rid of my NatWest card was just the start of it, and making that payment today felt just as good as poking a Barclaycard staff member in the eye with a stick.

So, I’m one month into my debt-paying-off experiment and my debt has decreased by a grand total of £579.26. I’m not saying this is going to happen every month, but it’s a good start as far as I’m concerned. Please leave your messages of awed congratulations and worship below.

 Numbers, numbers, numbers…..

Thursday 29th May, 2008 - £9,341.19 in debt…

A year or so ago, I heard about an amazing thing I could do to claw some money back from my bank – I could just make a list of all the charges I’ve had to pay over the last six years, and be reimbursed for all of them! Good idea, right? Then my mum told me I should do it, and all of a sudden I lost interest.

But finally, this week, I made myself go through my statements. I’ve got a fair amount of time on my hands, and apparently now is the time to get my claim in so I’ll be near the front of the queue if my bank does end up paying out (although that could be up to two years away). There’s an article here that explains the background to all of this.

So, all I had to do was look at my bank statements for the past six years and add up all the charges (for going over my overdraft limit and bouncing cheques). Then I had to write to my bank with a breakdown of these charges and the total I wish to reclaim, using one of the template letters from Martin Lewis’s website. Simple or what?

Not so simple when all your bank statements are in various piles of miscellaneous paperwork, but I needed to get all of that sorted out anyway. Four hours of bank-related nostalgia later (“ooh, I remember that cashpoint in Turkey!”; “did I really spend that much in Ikea in 2003?”), I had a claim of £1,540.00 on my hands. And now I play the waiting game…

Has anyone else done this recently? Should I expect some acknowledgement from my bank that they’ve received my letter? Anyone have any success stories from making claims before the process was put on hold?

 ‘Rudderless ship lacking conviction’

Just a quick follow up on yesterday’s posting. I’ve had some very interesting mails overnight so thanks everyone for writing in.

Clearly we have to differentiate between two parallel financial funnels that are currently working in conjunction with one another: the credit crunch and the rising cost of living. They’re separate entities that are happening to take effect at the same time. I don’t think I conveyed this yesterday, so it needed to be pointed out.

So, in the rising cost of living column, we can now add football season tickets!

This will not be a big deal for everyone, but I found the figures published yesterday quite interesting. First and foremost, my beloved Chelsea is the only Premiership side to freeze season ticket prices next year.

This will be scant consolation for fans both reeling from the Champions League melodrama, and cringing at the current managerial merry-go-round. Plus, at an existing average cost of over £700 per season ticket, I can’t see the Chelsea directors going short next year.

Elsewhere, fans of Premiership clubs can expect to pay an average of 7.2% more to watch their favourite side next year. Sunderland, Spurs, Portsmouth and (this will make you laugh) Manchester United fans face the steepest price hikes overall. In the current financial climate, it really doesn’t help.

Also, I read the following headline this morning in the newspaper:

‘Brown calls for global action on oil price’

….and it reminded of the following headlines I’ve written myself over the last few months:

‘British Gas Next to Raise Prices, Brown Lends His Voice’

‘Government to Intervene in Energy Price Debate’

‘Darling gets Bullish with Banks’

‘Government to Settle Egg Card Dispute’

The net result of these government actions? Well, British Gas managed to raise their prices, and raise them again. Energy prices are still on the increase overall. Banks steadfastly refuse to pass profits onto their customers, and Egg pretty much got away with cancelling 160,000 customer accounts for no viable reason.

Do I expect the Prime Minister’s call for action to be heeded by global oil companies?

No.

And finally, if you would deign to read my news article today, you’ll notice it describes the people most likely to become victims of ID theft. Somewhat alarmingly, I’m ticking pretty much all the boxes.

I live in NW3, South Hampstead, fifth on the list of the top 25 ID theft hotspots. I’m most definitely aged between 26 and 45, and I’m a tenant in a rented flat. Better be careful with my personal correspondence then.

It’s a good job I don’t earn £50,000 a year or I’d be really screwed.

Time to get serious

In the eighteen months since the credit crunch began to engulf the UK economy, where have householders been hit hardest?

In the late nineties, household spending was growing at a rate of over 4.5% year on year. Ten years on, this figure has been reduced to just 1.9%. The fallout from the sub prime lending crisis has forced Britons to transform their cavalier spending habits to that of canny spendthrifts.

The economical volte-face has been driven by a number of factors, primarily rising energy costs, rising grocery bills, exorbitant fuel costs and narrowing credit capabilities. As the cost of living climbs and property values tumble, consumer confidence has wilted.

The big six energy suppliers raised their gas and electricity tariffs by an inflation busting 14% on average during winter 2007/08. These price rises were blamed on skyrocketing wholesale costs and record crude oil prices.

Gas and electricity costs are expected to jump again this summer. According to energy watchdog Energywatch, such are the overheads with which energy companies are grappling, these rises are necessary to prevent the energy suppliers from slipping into debt.

The days of cheap food supply also appear to be a thing of the past, as the cost of an average grocery basket of essential items took a £15 leap from May 2007 to May 2008. These increases are the product of supply problems in key producing countries, mainly caused by bad weather and an increase in the use of land to grow crops for biofuel.

Increasing food prices are forcing many consumers to use emergency payment methods. A spring survey by the Post Office revealed four in ten shoppers were using credit cards to pay for groceries, council tax and utility bills.

However, credit cards have become a precious and (in some cases) unattainable commodity. Banks have become reluctant lenders, resulting in a climate where only applicants with blemish free credit ratings are accepted for credit.

February saw online credit card supplier Egg cynically cull over 160,000 clients, in a move widely perceived as the disposal of unprofitable customers.

The narrowing mortgage market has additionally contributed to UK consumers’ financial woes, with first time buyers effectively excluded from the more competitive mortgage offers. As homeowners’ worries increased, record applications for mortgage debt advice were received by the Citizen’s Advice Bureau.

Leading mortgage providers such as First Direct began to pull their most attractive mortgages altogether during March/April 2008. The Co-operative bank and a number of smaller building societies followed suit, while Halifax raised rates and manipulated its acceptance criteria to punish those who couldn’t afford a substantial deposit.

So what happens in the future? Is the worst of the credit crunch over, as many analysts are predicting? Have we corrected our credit dependent spending enough? Could the next raft of energy increases be the straw that breaks the back of a fickle economy?

I’d love to hear your views.

 14 points….get in!

Tuesday 27th May, 2008 - £9,341.19 in debt…

HOORAY!!! My first big stroke of luck since starting this pathetic journey towards becoming a normal, debt-free citizen: a flipping-well tax rebate. Thank you, God.

This is my third year of having to fill out a tax return, and I can’t say it’s ever been a pleasurable experience. In fact, my idea of hell is having to fill out endless tax returns in a roomful of pigeons, while Basshunter plays on a continual loop inside my brain.

Fortunately, I’m being given a rebate of £421 without even having to get flapped at by manic birds. I suspect this is to do with having a temping job and paying basic rate tax for a while. Whatever the reason, I’m happy. Once the money comes through, I’ll be transferring every single penny onto the Barclaycard.

However, if that money is to be put to good use and not just swallowed up by life generally, I’m going to have to get another job.

My visits to temping agencies last week were, well, uninspiring. Two of them asked me to look at their websites for available jobs (so what is this office here for, exactly?). Three others asked me to fill out some tax return-style paperwork and perform a series of demeaning tests, but still didn’t produce a part-time job at the end of it. This week, I might have to start asking for full-time work.

Yes, full-time. I’m only baulking at this because I still do freelance work on the side, which will occasionally take up another 35 hours of my week. Taking on a full-time temping job will give me the lovely, comforting security blanket of a weekly paycheque, but at the price of my evenings and weekends. Ah well – it’s not like I do anything with them anyway.

Although… I could have a bloody good weekend with that £421, couldn’t I?

In other news:

My debt has gone down by £20.36 as I’ve just received my Capital One credit card bill. The interest-free period on that card has just run out, so I’ve removed it from my wallet and stashed it upstairs, never to be spent again. Ha.

Still no luck with the online surveys – I keep getting emails saying “guaranteed £2.50 for completing this survey! Whoop whoop!”, but then being told that I don’t meet the criteria. It’s like being told I can enter Eurovision, writing and rehearsing an amazing song, and then finding out that I’m representing the UK.

My name? It’s Oli….i mean Groucho

Friday 23rd May, 2008 - £9,361.55 in debt…

I can’t tell you exactly what I’m doing next week as it’s a top secret mission involving espionage, stealth and quiet browsing. Don’t tell anyone, but Olivia Buck is entering the clandestine world of the mystery shopper. Sshhhhhh…

I’ve always thought mystery shopping would be a bloody good thing to do, especially if I were required to mysteriously shop for some amazing shoes or a new car or something. But I also thought it was a bit too good to be true.

Then yesterday, by chance, I was visiting a friend when she got a phone call from a company called Retail Eyes. She took some notes, asked when the assignment had to be done, put the phone down, donned a panama hat and aviator-style sunglasses, asked me to look after her children “if anything happens – you know…”, and left the house with a £5 note and a look of blind panic.

Who wouldn’t want to be a mystery shopper? The excitement; the glamour; the promise of £7.50 if you hand in your report by 7pm… I wanted a slice of her lifestyle and, by golly, I was going to get it.

The sign-up procedure was simple – a huge contrast to those of the online survey companies and, I suspect, far more worth it in the long run. From now on, I just have to keep up-to-speed with the assignments available (by checking the website) and make sure I can absolutely, definitely complete any assignment I sign up for. Otherwise I will be hunted down and shot in the knees (or so the terms and conditions seem to suggest).

My first assignment is on Wednesday of next week, but obviously it’s all very hush hush. I’ll be paying with unmarked notes and covering my tracks by zig-zagging wildly up the road before entering the shop. Can’t be too careful.

Any advice? Have I said too much? What’s a reasonable price to pay for a bullet-proof vest? Over to you…

 It’s not big and it’s not clever

No, this has absolutely nothing to do with Gordon ‘Two Sea Bass’ Ramsey.

Nor am I referring to Edwin Van Der Sar’s quite magnificent expletive peppered response to winning the Champion’s League last night, captured by live TV cameras and microphones.

Edwin, I’ve been a little disappointed by the outcome of certain penalty shoot outs in my lifetime too, not least last night’s. There’s no need to revert to blue language though, even if you are so very, very happy.

Neither am I making reference to Fakenham, Flash Floods or Feng Shui.

The ‘F’ word in question here is…………Free!

‘Should all customer service and tech support helplines be free of charge and UK based’, that’s the burning question in the Consumer Choices forum today.

You can join the debate here:

Consumer Choices Forum - Hanging on the Telephone

So yeah, the Consumer Choices forum is up and running, with ample opportunity to comment on all matters broadband, finance, energy and insurance, or just hang out and chat.

All existing Consumer Choices subscribers are eligible to post, all you have to do is choose yourself a screen name and you’re good to go.

Is good customer service the key component of a worthy ISP? Are mobile broadband costs driving you up the wall? Is Virgin Media really the fastest mid range broadband provider?

It’s time to have your say.

 Survey says: ‘No Can Do’ 

Wednesday 21st May, 2008 - £9,361.55 in debt…

According to the Kubler-Ross model of bereavement, we all go through five stages when we lose a loved one: Denial, anger, bargaining, depression and acceptance. How about when we lose a job?

I wouldn’t call my job a “loved one” by any stretch of the imagination, so the stages are vastly different. For me, the anger stage came first, but that’s probably because of the way I left - in a storm of shrieking and gunfire. Then came depression and worry – the words I’d exchanged with my boss were playing on my mind and I was concerned about the impact on my finances.

Yesterday, I concentrated on the ‘supreme joy’ stage. I would never have to see my boss’s stupid moustache ever again! Never have to await his 9.05 phone call to check that I’d seen all his messages! Never again sit in silence while he bellows down the phone to his disadvantaged Philippino wife! YESSSS!!

Ahem. Anyway, today has seen the stages of acceptance and, finally, organised resilience.

The bare fact is that, after tax, I used to get about £195 per week for doing that job. So, to stop myself from going under, I need to keep making – or saving - that amount of money while I’m out of work.

I reckon I’m saving £10 a week on petrol by not going to the office, and £4 a week on overpriced sandwiches (once you take off the price of the lunches I eat at home). So that’s £181 per week still to find.

Today, I signed up for every online market research, survey and review site I could lay my hands on (all the ones that pay, anyway). It took a long, long time: those sign-up procedures are way more complicated than they need to be.

So far, I have earned precisely nothing. No pounds and no pence. I’ve done four surveys (well, things that were long enough to be surveys but were apparently pre-surveys) and been told that I don’t meet some mysterious criteria.

So, because I’m a 28-year-old female with no wedding ring, no children and no mortgage, apparently I’m un-surveyable – has anyone else had this problem? Have I just been unlucky so far? Are there particular sites that I’d have more success with? Or should I concentrate on playing the long game with the review sites?

In other news:

Money-saving tip of the day: Get a notice board. This has come in really handy for me so far. In fact, I have two: One next to the front door for the money-off vouchers that come in the post (you know – the ones that you’d normally throw in the bin), and one upstairs for my credit card bills and statements. This way, I know where I am with my debt and I can pick up a voucher or two on my way out the door to the shops. And the boards themselves cost about £2 each from Tesco – every little helps, as they say.

Videos - Utter Garbage

Sky Plus, iPlayer, 4OD, Internet TV, dedicated catch up channels; there are so many ways to make sure you don’t miss your favourite show.

So why on earth are VHS videotapes still more popular than internet TV? Check this out:

VHS still ahead of internet TV for catch-ups

I’m dumbfounded, and not for the first time.

Sure, it’s great to reminisce about the good old days when you taped Airwolf and recorded the Top 40 from the radio on your ghetto blaster, but (and I’ll say this in a Carrie Bradshaw style):

‘….in this day and age, are VHS video cassettes really necessary?’

I remember my first experience with VHS. We borrowed next door’s top-loading Ferguson VCR machine, which required four strong men to carry over, and watched Neil Diamond’s version of ‘The Jazz Singer’ as a family, all eyes fixed on its fuzzy, chewed up brilliance.

Great film incidentally, I love the bit where he rocks up at the airport with a massive beard. And the soundtrack (“Hello my friend, hello…..”) is a rare and precious gemstone.

However, this was 1990 (I’m from Northamptonshire; everything arrives 5 years too late there). John Barnes was urging us to hold and give but do it at the right time, we were wearing jeans that could accommodate the entire population of Macedonia, and Trafalgar Square was besieged by hoards of very angry poll tax rioters. Whisper it, but that was eighteen years ago.

I’m aware there will always be individuals who prefer traditional and established methods of enjoying media, and I only baulk at labelling this practice ‘Paul Weller Syndrome’ because I myself choose to listen to vinyl records above CDs and MP3. Additionally, reading a story online is no substitute for physically holding a book in my opinion.

My VCR got turfed out light years ago though, with good reason. There’s no pleasure to be gained from endlessly fast forwarding or rewinding, plus the gloomy spectre of ‘oh no, I taped over the bar mitzvah’ constantly hovers overhead like the Grim Reaper’s axe.

Frankly, Sky Plus rocks my world.

Am I right, or am i right?