Has this been a summer of discontent, or will it turn out to be a year of discontent?
This is a big question and one that could be answered in many different ways.
As I sit here writing this blog in many places around the UK there will be talk of the news that banks are now going to start contacting their cash strapped mortgage customers telling them to 'Cut your spending or risk losing your home'.
These customers are being told to cut back on their mobile phones, socialising, and household shopping to 'prioritise" their mortgages. Along with this banks will conduct 'credit checks" on these customers to see if they pose a risk in the coming months when interest rise.
Many people will think it is unfair and already we have seen a big rise in clients telling us that they simply cannot afford to keep their homes due to negative equity and rising living costs and expenses. On a daily basis I am finding myself advising more and more people on voluntary repossession more than I ever have after 3 years working in the industry. Add to this the increase in people needing professional debt help, it does make you think if our government really understands and knows what is actually happening in real life to families finances around the country.
One thing we do know is that families have less money to spend now, than they did at the height of the recession. Latest research figures have shown that more and more families are using savings to combat rising living costs. The rise in utility bills will hit families the hardest and we have now seen nearly all the 'Big 6" energy companies confirm that they are increasing costs, add to this the announcement that BT are to increase call charges also, then it makes a very sorry picture indeed. It makes you wonder which fat cat at the top of these companies will roll over first asking for more cream?
As a debt adviser I deal with people from all walks of life on a daily basis who are struggling financially and need help, and the most astonishing thing I encounter is the fact that many people do not budget their finances or simply do not know how to.
Budgeting your finances will help control spending and give you a clear picture on how your money is being used up or in some cases wasted. For a family this is very important and I urge anyone who does not budget or keep a check on their finances to do so now.
There are tough times ahead and yes we may have just seen the summer of discontent with riots, stock market crashing and the middle east crisis in Libya, but will debt and rising personal finance troubles be the last blow below the belt to knock us out?
I will leave the answer to that for you to decide, but ladies and gentleman, 2011's summer of discontent may very well be known in years to come as 'The Year Of Discontent'.
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