Recent research carried out by R3 the Insolvency trade body into the attitude of young and old people to debt has found the following
* 36% of 18-24 year olds would rather bury their heads in the sand than deal with debts compared to 9% of 55-64 year olds
* A staggering 26% do not even open their bills compared to 10% of over 65 year olds
* 28% try to avoid contact with people they owe money to. This is 11% for over 65s
* 30% do not even know who to contact for help compared to 8% of over 65s
* 44% of all ages still believe that you have to pay for debt advice.
Has the time now come to demand that the government change the National Curriculum so that financial planning and money management are an essential part of a child’s education?
By the time they leave school children should know how to budget, how to save and what they can do if it all goes wrong.
Also it might be worthwhile to provide additional education to those under 25s who have suffered from debt problems so that they don’t make the same mistake in the future.
Maybe it is now time also for the financial institution to be more proactive on how they lend to the young. Have reduced credit limits or capped limit. Reward those who pay off there credit each month and remove facilities for those who pay the bare minimum so they can not rack up large debts.
By teaching the next generation about how to deal with there finances better and that credit be used in proportion to a person’s income it should hopefully lead to less long term financial problems.
What do you think?
For those who have been following the battle for survival by Crystal Palace, it seems there is finally hope as the consortium trying to purchase the club, CPFC2010, agreed a buying price at the eleventh hour on their deadline date of 1st June. And by 7th June – the deal was signed.
But the issue of Football Club Administrations keeps rearing it’s head and couldn’t be more relevant as football fever fills the nation during this year’s World Cup.
As a nation of avid football fans – our love for this sport and the Clubs who host it is like no other – they “Club” is considered family, and for family, most of us, would do anything.
So the question has to be asked, when a Club is threatened by Administration – what roles do / should the fans have? Do they have a genuine right to have a say in the future direction and lifeline of the Club?
In the case of Crystal Palace F.C they are due to vote on 25 June to agree or disagree whether the Club can enter into a CVA – Company Voluntary Arrangement.
In an interesting move some of the fans of the club will be able to vote at this meeting as they had prepaid for Season Tickets over the forthcoming seasons.
I personally think that this is a good strategy as the true fans of the club will get to have a say in what happens to the club going forward and may actually tip the vote in favour of the CVA.
With the controversy earlier this year with Manchester United’s F.C United and Red Knights, I wonder if it will be the fans who will be running the Clubs in the years to come?
It looks like Debenhams and JD Sport are two of the interested parties looking to buy the collapsed footwear chain Faith which entered Administration on the 22nd April 2010.
It is believed that JD Sports have offered £4m for the company and that Debenhams are looking at a similar deal to when it acquired the brand and stock of Principles in 2009.
This could potentially save up to 1700 jobs currently at risk.
The Administrators of Faith, Mazars have confirmed that the deadline for offers to be made is the 7th May 2010 and that several information packs have been sent to interested parties.
This should be good news for my wife and my credit card as with well respected high street brands like JD Sports and Debenhams interested in purchasing Faith she will hopefully not need to go on that emergency spending spree to buy new shoes.
A business may not be a person, but it’s built by people. The ethics and standards it works towards are created by people. Those who run it, beleive in it, evolve it and feel passionately loyal to it, are of course people. And those who fight for it’s survival or mourn it’s loss, are people.
In our line of business the average working day consists of serious conversations about businesses which are struggling to continue and the livelihoods which will be effected should such businesses come to a close. What makes us different is our empathy and understanding that no matter how black and white the figures are, there has to be consideration made to the emotional element of this – the lives that will be effected. It may not effect the outcome of the situation but it will effect the approach.
Through our blog, we’ll discuss issues arising in the press or case studies which may help illustrate certain debates around this subject matter more clearly. We welcome your questions and hope that through this forum of communication, we can improve the understand people across the country have about the ways in which insolvency and corporate recovery can be acheived.
We would never underestimate the emotional strain and worry trying to save a business can cause and will assist you in every way we can.