"BACK TO THE BLACK" UPDATE

Yesterday I was working with Jenny Layton, who's giving me fantastic help with the text-editing of Edition 2 of "Back To The Black", i.e. the complete content as an e-book. I am still hoping we'll get the file uploaded by the end of February.

After that the next project will be a podcast and an audio version of the complete book.

This morning I did another interview with Heart FM, this time with Rob Mayor. This came about because Heart felt that the issue of "Payday Loans" needed exploring further. We talked about why people are tempted by such loans, the benefits on which they are sold, and the well-known disadvantages of the astronomical interest rates. Those rates could be affordable if it's the only game in town AND if the loan really is repaid really quickly, i.e. on payday, but if it's rolled over then the problem starts.

We talked about credit unions as an alternative to high-street lenders or to payday loans.

I also stressed the need to take advice, preferably from an independent, impartial (i.e. not-for-profit) advice service such as the local CAB (Citizens Advice Bureau, for the benefit of any readers of this blog who are not in the UK) or CCCS (Consumer Credit Counselling Service) or National Debtline. Then the need to formulate a plan with the aid of that advice, and to inform the creditors that is what you're doing and ask them to freeze interest while that's happening. If you don't ask you don’t get, but many debtors spend too long in denial (and I was one) and don't communicate, which makes the situation worse.

All this is the kind of advice that most people have read lots of times; however, my hope is that when the complete book is published, people will view the advice in a different light because of what I say about where I went wrong. In fact the book’s subtitle could even be “Learn from my mistakes”.

"BACK TO THE BLACK" UPDATE

Belated posting about another radio interview, following the launch of the free edition of “Back To The Black”.

This was with Heart FM in Bristol, (formerly GWR FM Bristol) who sent their reporter Chas Rowe to interview me at home. The station had told me that clips / soundbites from the interview would be broadcast during their news bulletins last Monday, i.e. 18 January, aka “Blue Monday”. This is a day which has apparently been “scientifically proven” to be the most depressing day of the year. Heart FM said that the launch of my book was a good news story they’d like to run on that day, which was encouraging to hear.

Apart from the questions I’d expected, was one about payday loans: would I advise anyone cash-strapped at the end of January to take out one of these loans? This is a tricky matter: anyone considering any such loan must have exhausted all other possibilities. These loans, for sums up to £1000, are known to carry very high interest rates but they are marketed as instantly available, which of course is very attractive when things are tight.

If the sum is repaid very quickly then paying that interest may be better than having to default on the mortgage or a credit card bill; the problem arises however if the sum isn’t paid quickly. I said that if anyone was in a situation where they saw no alternative solution by month-end, then they could take the loan provided they immediately set in place a debt management plan, e.g. with the help of Citizens Advice, or CCCS (Consumer Credit Counselling Services), or some other local independent debt advisory service, and then repaid that loan as a first priority.

For the record, an online resource lists the top 5 payday loan providers ranked by “rough estimate of lender’s approval rates”. The APRs of these lenders varies from 994% to 2339%.

For extra info see a posting on the MoneySavingExpert website:

http://www.moneysavingexpert.com/news/loans/2010/01/loan-sharks-leaving-victims-in-debt-all-year

Finally, credit unions are an alternative and much cheaper source of short-term finance that people in this situation could look at. Here in Bristol (UK), for example, they can be found at http://www.bristolcreditunion.org/ and offer loans from £100 to £7500. Their website says: “By law credit unions cannot charge any more than 2% per month on the reducing balance of a loan. This represents a maximum interest rate of 26.8% APR (Annual Percentage Rate), and that is the most you will ever pay on your loan.”

"BACK TO THE BLACK" - MEDIA RELEASE

Here’s a copy of a media release I’m in the process of circulating, regarding the launch of “Back to the Black.” Watch this space for updates.

MEDIA RELEASE

Date: 5 January 2010

From: Michael MacMahon

Subject: New book helps debtors get “back to the black”

AUTHOR PHOTO AND INTERVIEWS AVAILABLE

______________________________________

A new self-help book for people with debt problems will be launched this month. “Back to the Black: how to become debt-free and stay that way” is based partly on the author’s practical experience of escaping bankruptcy and partly on the principles of coaching. A substantial extract becomes available as a free downloadable file on 18 January and the complete e-book will be available in February.

The book’s author, Michael MacMahon says: “A few years ago I survived a major financial crisis. While digging myself out of that hole, I became interested in the principles of coaching, especially the idea that most people have the knowledge and resources to solve their own problems, if only they get the right support. One of the best ways of providing that support is to ask the right questions, because questions help to focus thinking, especially at times of stress; and being in debt is certainly one of those times. The book is thus derived from my experience and also demonstrates how those key questions can help anyone get out of debt.”

The book has been favourably reviewed by debt advice experts at Citizens Advice. Some of the best advice is simple practical stuff, for example:

• Make a detailed analysis of your financial situation: no matter how bad, it’s better to know the truth.
• Communicate with creditors: the problem gets worse if you ignore it.
• Make an offer: any offer, no matter how small, is better than none.
• Never negotiate on the phone: do it in writing; it’s less stressful.
• You don’t need to be alone: get help from a debt advice organisation.
• Keep records of all communications: it pays dividends.

ENDS

NOTES FOR EDITORS

The book

The first release of “Back to the Black: how to become debt-free and stay that way” will be an abridged e-book, available free of charge from 18 January 2010. The complete publication will be released as an e-book in February: prices depend on format but average below £5. Audiobook and paperback editions will be available later.

Weblinks for the free download will be published on 18 January. For updates, see the author’s blog: http://michaelmacmahon43.blogspot.com/

The author

Michael MacMahon is a freelance writer and voiceover. He was previously a managing director in the chemical industry and then ran his own training business. He lives in Bristol.

CONTACT DETAILS: interviews, photos etc:

Michael MacMahon

Tel: 0117 973 8420

Mob: 07905 138701

E: mail@michaelmacmahon.co.uk

Blog: http://michaelmacmahon43.blogspot.com/