"BACK TO THE BLACK" - RADIO INTERVIEW

Yesterday (23 Sept) I did an interview about “Back to the Black” during Graham Torrington’s mid-morning show on BBC Radio Bristol. I can’t attach the file here, as it is too large, but the interview is available on the BBC site until 29 Sept.

"BACK TO THE BLACK" HAS ITS OWN BLOG

Last week I flagged up the fact that my new book "Back to the Black" is now available in a variety of e-formats on the Smashwords site: http://www.smashwords.com/books/view/22886

I also announced that the book has its own website: www.back-to-the-black.com

Today I have also set up a dedicated blog on the Wordpress platform: http://backtotheblackblog.wordpress.com where I'll be posting any new developments with the book, plus news related to debt, and inviting discussion.

Watch that space!

PAYMENT PROTECTION INSURANCE - RECENT MEDIA COVERAGE

In my last post I announced a new website dedicated to my eBook, "Back to the Black: how to become debt-free and stay that way".

You’ll find the site at http://www.back-to-the-black.com/

In the book I refer more than once to Payment Protection Insurance (PPI), about which I had a healthy scepticism based on personal experience. Ten years ago, my IFA persuaded me to take out PPI; after several hefty premiums, I discovered that, being self-employed, I would not have been able to claim from the policy.

I complained of mis-selling, the policy was cancelled, I was promised a refund of premiums paid. I can’t recall ever getting that refund.

That was then. More recently, following lots of adverse media coverage, the whole PPI area was said to have been tightened up. Therefore, and in the interests of balance, I asked a practitioner who knows the subject to give me a current overview of the product. This he did and I included his comments in full within my book. Here’s what he said:

My view of PPI is:

Very good product, where appropriate. Especially in these tough times.

BUT

1. Ensure product is specific to your circumstances - self employed / agency work / contract work etc.

2. What is non-pay period - some policies don’t payout for first 3 months!

3. ONLY go for monthly based policy, not single premium - unless it is at wholesale cost, with no commission attached.

4. Check what you have to provide to claim - sign on/ monthly certificates / doctors notes etc etc

5. Check how long payment lasts.

It is a valuable product on credit cards, as the charge is only based on the amount outstanding, so during good times and if you clear your card, it costs nothing.

Valuable on a mortgage, but again do research, don’t just take the mortgage provider’s contract. Search around.

The sale of PPI has changed significantly over the past year or so, as many past products are now being claimed against as mis-sold, so providers are more cautious in 'stitching up' the client.

As always, look at the small print and take notes, and send written confirmation of your understanding to the provider of any conversation you have had.

But is the matter resolved? This month’s edition of the magazine “Moneywise” has an article entitled: “The 10 financial products to ditch now”. (the front cover and the web version were even more forthright: “10 rip-off financial products.”) Here is the piece:

PPI, which promises to cover the repayment on a debt if you lose your job or are unable to work due to illness or accident, appears to be a prudent way to protect yourself from huge debts.

But, unfortunately, the banks' hard sell of PPI meant that thousands of people ended up with a totally worthless product. "They were selling PPI to the self-employed," says Peter Staddon (see below), "although they would never have been able to claim for unemployment."

However, don't let this put you off all plans. "Some policies are good. Look for those sold through brokers as they can arrange cover that suits your needs," he adds.

Alternatively, consider income protection insurance, which can pay until you retire, and is often more comprehensive.

SAVING: The figures vary but, according to which? PPI could add an additional £2,000 to £3,000 to a £7,500 five-year loan

USELESSNESS RATING: There are better protection products available

* Peter Staddon, by the way, is the head of technical services at the British Insurance Brokers’ Association. His view should therefore be taken seriously.

PPI can provide valuable protection but beware, especially if you are self-employed.

Finally: the same issue of Moneywise confirmed that new customers with Lloyds Banking Group will not be “ripped off by the sale of PPI (their wording, not mine) alongside loans, mortgages and credit cards after the bank announced it would stop pushing the product. Lloyds is the first of the banks to take this step”. A most welcome step.

NEW WEBSITE FOR "BACK TO THE BLACK"

I’ve just launched a new website dedicated to my eBook, "Back to the Black: how to become debt-free and stay that way".

On the new site you’ll find lots of information about the book; about yours truly; and about the reasons why I came to write “Back to the Black”. There’s a selection of case studies from the book; and a link to the eBook retail site where you can view or buy the book.

You’ll find the new website at www.back-to-the-black.com

"BACK TO THE BLACK" NOW AVAILABLE

My book, "Back to the Black: how to become debt-free and stay that way", is now available as an eBook on the “Smashwords” site.

Ten years ago I ran up heavy debts when my business collapsed. I had started a training business seven years before, after a long career in the chemical industry. When my enterprise ran into difficulties, credit was easy, so I could fund it with loans and credit cards. In the short term this plugged the gap; I thought things would improve. They didn’t.

So I closed the business down, looked for a job, and tried to work out how to solve my debt problem. My first intention was to pay off everything I owed but I knew it would take time. I didn’t think I could get the debts down to a manageable level in less than five to ten years; my creditors would not give me that kind of time.
My financial adviser recommended bankruptcy. I had by then sunk all my assets into the business, so he said that there could never be a better time for me to go bankrupt. For many reasons I didn’t want to do that although after a fairly short period, I would have been debt-free. The advantages and disadvantages of bankruptcy – and its modern alternative, the IVA (Individual Voluntary Arrangement) – are set out in detail in the book; recent developments have taken away some of the former stigma and the practical disadvantages of these solutions.
However, I decided instead that I would negotiate a deal with my creditors myself. This approach I call “Plan C - negotiate a deal” - and you’ll find it in Chapter 10 of the book. I made an offer to all my creditors for full and final settlement. Eventually all of them, apart from the taxman, agreed to the deal.

At the time, I thought my debt problem was insurmountable. It was a very stressful period. However, I was lucky to have the support of a debt advice agency and other professionals and friends.

I came through the experience; I learned a lot.

I was not, and am not, happy with the fact that I was unable to pay my debts in full. After the event, however, I decided to write up what had happened, partly for my own benefit. I even thought that maybe it would make a couple of newspaper articles. If other people with debt problems could benefit from reading about my mistakes and what I’d learned, then something good would have come out of it all. Those articles eventually grew into a book – “Back to the Black” – which sets out what I call the three main strategies for dealing with debt. It also contains lots of advice for dealing with debt-related stress and with the demands of creditors.
In summary, my book is based not on a theoretical approach to debt, but on painful experience. I hope that you can benefit from reading about that experience. If you have debts, whether they are consumer debts or business debts or both, the principles for dealing with them are the same. The experiences you are going through, though unique to your situation, will have much in common with mine.

Go to www.smashwords.com/books/view/22886 if you'd like to know more.