Have you ever had financial advice? I have, in a few different formats.

It is important to realise that financial advice isn’t something that the ultra-wealthy get and not something we all have access to in one way or another.

I’ve had advice on our mortgage (and we were very happy with the deal). I will have to go back in a couple years to get it again when our deal is up.

I was given advice on life insurance and income protection. Although my life insurance experience was disappointing at the time (although the adviser was excellent) – I do now how an income protection policy, which I was advised into.

These were good experiences in terms of the advice I felt I received. Unfortunately, I have also had one bad experience.

When I was much younger and getting started with my career as a freelance journalist, I was advised (admittedly informally) to not bother getting a pension.

This was bad advice and has almost certainly set back my future retirement plans by about four years, as it delayed my first pension pot starting until I got a full-time role in the UK in 2016.

Crucially, I did not know this was bad advice at the time – because the adviser was the exert and I was a graduate with absolutely no financial knowledge to speak of.

Fortunately, I now know better.

More from Edmund Greaves

Why advice matters

The industry on the whole – from mortgages to life and general financial advice – has come on considerably since those days.

The sector does suffer from a major problem with the advice gap. This gap is essentially the gulf between what financial advisers are permitted to offer and the minimum level at which giving that advice becomes commercially viable.

The Government and regulator are fortunately looking at the issue, but it remains to be seen what kind of fix we get.

I have recently begun a regular series of interviews with financial planners for Mouthy Money’s partner site Octo Members. You can catch the first edition of that with Smart Financial’s Kate Morgan on Mouthy Money.

Since I began (and we are still very much at the start) the sense I’ve gotten from the diverse range of planners is that these people have their clients at heart.

Yes, the process costs money – but they seem unanimously dedicated to the best outcomes for people who need help with their financial lives.

Importantly, it is about more than just bunging savings into particular pots and deciding what to invest in – planners look at a whole range of issues from inheritance to tax liability, planning for later life care and the longevity of a retirement plan.

Crucially, we want to showcase how financial planners think about their jobs and the roles they have to play in people’s lives – in order to better demystify the process and how it might be useful to normal people.

This forms a key part of Mouthy Money’s mission – to help people grow, protect and enjoy wealth no matter where they come from in life.

We’re going to be sharing these conversations first on Octo Members, but also here on Mouthy Money in order to get a better insight into what makes financial planners tick and why what they do matters to ordinary people. Stay tuned!

Photo credits: Pexels

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This week in our first edition of Money Mole – our insider looks at why banks make it so damn hard to contact them on the phone.

If you’ve ever had the misfortune of needing to phone your bank, you’ll be all too familiar with how painful the experience can be.

Prepare to set aside at least an hour of your day just to get through to someone, and that’s after going through several rounds of automated messages and apologies for ‘unusually long wait times’ that have become the norm.

But before all this hassle even begins, if you need to phone one of these firms now, you’ll encounter a new and even more frustrating problem.

Banks have quietly buried their phone numbers on obscure pages of their websites, presumably to deter customers from ringing for help.

In a way, it’s genius – you can’t have long call wait times if no one can call you. But for their customers, it’s an infuriating nightmare.

I looked at some old versions of bank’s homepages on the internet archive Wayback Machine and found most banks’ ‘contact us’ pages had their phone number in very obvious places.

When the pandemic hit, banks replaced these with messages saying call volumes were high and wait times long and encouraged people not to ring.

Since then, those messages have been removed – but phone numbers haven’t returned.

Even finding the ‘contact us’ button anywhere on the homepage can be a miserable game of Where’s Wally.

Where’s your number?

Using Wayback Machine I was able to look at the major banks contact pages.

Lloyds is not playing fair. In 2019 it had a central contact number on the home page, but that is now long gone, replaced by a complicated menu on the contact page. Lloyds’s website has a particularly tiny “contact us” button on the homepage too.

Santander used to have a super clear list of important numbers on its contact page in 2019, but in 2023 you’re forced to use a fiddly menu instead.

Barclays and HSBC are even worse – they don’t appear to have had an obvious contact number on their home or contact pages and have had annoying clicky menus since 2019 at least.

But worst of all is the NatWest page, which is so obfuscatory about how to contact the bank they may as well not have a phone number. It took us multiple clicks and dead ends before we got to a telephone number and was extremely unclear throughout the site.

Back in 2019 it wasn’t much better with several clicks needed to get to a phone number list, but at least that list used to exist.

The bank even tries to foist an AI assistant upon you as if it weren’t bad enough (something they were already doing in 2019 too).

The point here isn’t that the numbers aren’t available at all – they are if you know where to look or are prepared to spend some time digging around.

It is that it should be the simplest thing in the world to get hold of one, especially for customers who might be in a vulnerable, a victim of fraud, or who might not be technologically savvy.  

The fact though is it is far from simple. And it is made worse by the swathes of bank branch closures we see in the news every month.

At least, the Money Mole thinks they should provide one easy to find central contact number for those who aren’t comfortable navigating the websites looking for the “right” number.

Worrying business trend

And banks aren’t the only ones who have gone down this route – telecoms firms are also nigh-on impossible to contact, which is ironic, given the nature of their business.

We don’t have the time or inclination to dig through every major company in the UK but it appears to be a worrying trend in many businesses.

I’m sure these firms are inundated with calls and need to filter out some of the simplest requests.

But hiding their phone number is just sneaky and a huge disservice to loyal customers who want to speak to a human in a time of need.

Worse – it can drive people to search for numbers in other places such as search engines, which might yield straight up scam results.

A chatbot isn’t going to reassure you if your card has been stolen or you think you’ve been scammed.

It’s time for these companies to stop shirking their responsibility to be contactable by their customers and get their phone numbers back on the home page.

What the banks say

Mouthy Money has approached the banks about the lack of phone numbers on their home pages. 

Barclays, HSBC and Santander were quick to point out they have general customer service numbers on the back of their bank cards. This isn't that helpful if you've lost your card though. 

The banks say their customer contact pages are designed to help people find the right customer service line for their needs. 

Here's what they've told the Money Mole

Santander: "The previous version of our contact pages (pre-2020) displayed a range of phone numbers, which often led to customers calling the wrong line and needing redirection. 

"The current online experience for those searching for a contact number ensures that the right number is provided, within a few clicks, and in line with the customer’s needs. 

"The objective is to help customers get to the right place to address their query sooner – and provide options including digital and automated support (such as our chatbot) as alternatives to the phone for the many customers who choose to interact with us this way."

"Our customer research in 2019 showed us that a significant number of requests coming into us over the phone could have been resolved with the information provided on our website."

The bank also said it now has a "voice in branch" initiative where branch employees assist on customer phone lines.

Barclays: "Regarding the ‘contact us’ page itself: We have specialist customer service teams for different products and types of enquiry – the triage options on our ‘contact us’ page help customers find the right number for each team, so they can get their enquiry resolved more quickly."

HSBC: "The HSBC UK homepage features a help and support section that contains answers to popular customer queries, including how to contact us by phone, online chat and in branch.

"Some customers, including those with certain vulnerabilities or access issues, prefer not to contact us by phone so we also offer the opportunity to talk to us via online chat, as well as visit us in branch."

Lloyds Bank: “Our Contact Us and Help Centre hubs are linked from our Lloyds Bank home page and, once on these hubs, customers can access dedicated and extensive information about customer support, including the phone numbers for our teams.”

NatWest: “We offer a range of ways that customers can contact us, on the phone, through our website, mobile app and in branch. Our online chat is often the quickest way a customer can receive help. We also clearly print our phone number on the back of all our bank cards.”

The Money Mole is a new insider column brought to you by personal finance blog Mouthy Money.

Written anonymously by an experienced financial media personality working deep inside the money sector, the aim of this opinion column is to call out what we think is bad behaviour and general shithousery from financial firms and other businesses in the UK.

Have you got something you want to dish? Email us at editors@mouthymoney.co.uk

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Dealing with creditors and mounting debt can be an overwhelming experience, but keep hope, it is possible to negotiate debt issues with them.

With the right strategies and a proactive approach, you can negotiate debt with your creditors to alleviate your financial burden and pave the way toward a debt-free future.

In this article, we explore six invaluable tips to empower you to negotiate debt issues effectively.

How to negotiate debt

Tip 1: Understand your financial situation

Before you begin negotiating with creditors, it’s crucial to have a clear understanding of your financial situation. Gather all your financial documents, including bank statements, bills, and credit reports.

With all the necessary documents to hand, create a comprehensive overview of your income, expenses, and outstanding debts. Armed with this information, you’ll be better equipped to approach your creditors with a realistic and feasible negotiation plan.

Tip 2: Create effective lines of communication

Effective communication is the cornerstone of successful debt negotiation. Reaching out to your creditors promptly and proactively is essential instead of avoiding their calls or letters.

Be prepared to discuss your financial difficulties candidly but professionally. It’s important to remember that creditors want to recover their money, so they might be willing to work with you if you commit to resolving your debt.

Tip 3: Propose a repayment plan

When negotiating with creditors, proposing a structured repayment plan that you can realistically manage is beneficial. Offer a lump-sum payment or suggest a revised payment schedule that aligns with your financial capabilities. Be sure to express your willingness to meet your obligations and explain how your proposed plan ensures consistent progress toward reducing the debt.

MORE FROM MOUTHY MONEY: How to reset your finances after a summer splurge

Tip 4: Emphasise your willingness to collaborate

Negotiations are a two-way street. While you aim to reduce your debt, creditors seek assurance that they will eventually recoup their funds. Showcase your willingness to collaborate by highlighting your efforts to improve your financial situation. Emphasise any positive changes you’ve made, such as cutting unnecessary expenses, increasing your income, or attending financial literacy workshops. Demonstrating your dedication to enhancing your financial outlook may sway creditors in your favour.

Tip 5: Request freezing of interest and charges

When you’re knee-deep in debt negotiation, the last thing you want is for your efforts to be in vain due to the relentless growth of interest and charges. That’s where the strategic move of requesting the freezing of interest and charges comes into play. Imagine trying to empty a sinking boat with a hole at the bottom – that hole is the interest and charges that keep accumulating, making it difficult to stay afloat.

By urging your creditors to freeze interest and charges, you effectively put a pause on that sinkhole, giving you a chance to navigate your way out of debt more efficiently, allowing every payment you make to directly chip away at the core debt amount, rather than being devoured by the ever-increasing interest.

Tip 6: Where necessary, seek professional assistance 

If negotiations become complex or you’re facing multiple creditors, seeking professional assistance can be prudent. Credit counselling agencies and financial advisors can offer expert guidance tailored to your financial situation. They can help you devise effective negotiation strategies, navigate legal complexities, and mediate discussions with creditors. Just ensure you choose reputable and accredited professionals to uphold your best interests.

The art of negotiating with creditors and reducing debt demands a combination of strategy, persistence, and a clear understanding of your negotiating power. Armed with the tips outlined in this blog post, you’re in a strong position to embark on a successful debt-free journey.

Photo Credits: Pexels

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Mouthy Money Your Questions Answered panelist Sarah Coles answers a reader’s question about what they can do if they can’t afford to pay their tax bill. 

Question: I lost my job at the end of last year and now don’t have enough money to pay off my tax bill at the end of January. What can I do? 

Answer: If you’ve been putting off doing your self-assessment tax return because you can’t afford to pay your bill, the best approach is to consider it as two entirely separate things.

First, you need to do the paperwork, or you’ll face a penalty for missing the deadline of 31 January, and even if you can’t afford to cover your bill in time, there’s no need to fork out for admin delays.

If you can’t pay on time, and you don’t do anything about it, you’ll also pay a penalty – which will rise as time goes on. Don’t be tempted to ignore it, because it won’t go away, and the consequences will get worse.

If you’re not engaging with the taxman at all, they have the power to take some pretty drastic steps. They can pass the debt to a debt collection agency, take money direct from wages or benefits, take you to court, and even make you bankrupt.

If you live in England, Wales or Northern Ireland they can take money directly from your bank and take your belongings and sell them – which can add substantial costs to your debt.

However, if you do the tax return on time, and set up a payment plan, although you’ll pay interest on outstanding tax, there won’t be any more penalties or other horrible consequences.

These payment plans are officially called ‘time to pay arrangements’ and allow you pay in instalments.

You may be able to set one up simply online (on the HMRC website) as long as you owe less than £30,000, are within 60 days of the payment deadline, aim to pay the debt over the next 12 months, and don’t have any other payment plans or debts with HMRC. 

To do this, you’ll need your bank account details and your unique tax reference number (sometimes called a UTR). You will have been given this when you first registered as self-employed, and it will be on previous returns. You can also find it on your online HMRC account.

If you fall foul of any of these restrictions, it’s more complicated, but don’t let this put you off, because there’s still a very good chance you can sort something out.

You’ll need to call the self-assessment payment helpline on 0300 200 3822. They’ll take you through a more in-depth process, so you’ll need to prepare for the call.

They’ll start by checking you can’t pay in full, and they’ll ask if you can make a payment towards the total debt.

You’ll also need to give details about any other savings or investments, (excluding pensions) and will expect you to use this to cut your debt as much as possible. Then they’ll work out what you can afford each month.

You’ll be asked details about what you earn (including any income from pensions), how much you usually spend, and whether there are other taxes you need to pay.

The amount they’ll expect you to hand over is usually around half of what you have left over after you’ve covered all other outgoings including rent or mortgage payments, food, utility bills and any fixed outgoings.

The repayment schedule will be based on what you owe and what you can afford to repay – there’s no time limit on how long it can run for.  

Once the play is set up, you will be able to talk to HMRC and if you’re not happy with the repayment schedule, you can ask them to tweak it.

You can pay also make overpayments if you are able to and this will clear the debt faster.

The full process can be stressful, so it can help enormously to contact a debt charity like Stepchange or Citizens Advice. They should be able to help you understand your overall financial position, and deal with any other debts.

They can also go through the process of working out what debt repayments you can cover, which puts you in a better position when you contact HMRC. They’ll help you produce a ‘standard financial statement’, which the taxman will accept as proof of what you can afford.

However, don’t assume it’s definitely going to be a nightmare. In most cases if you follow all the steps you can set a repayment plan up quickly online, or with a slightly longer phone call to the tax office.

HMRC is aware of the cost-of-living crisis and how people are struggling and ultimately they want the tax to be paid, so there’s no point in putting it off or delaying getting it sorted.

Sarah is an analyst at Hargreaves Lansdown

Sarah has been an analyst with Hargreaves Lansdown for the past five years, after spending 14 years as a financial journalist writing for publications ranging from Bloomberg to AOL Money. Her areas of expertise include savings and financial planning – covering everything from tax to borrowing, spending and the housing market. She is also co-presenter of HL's ‘Switch Your Money On' podcast.

She is passionate about encouraging people to get to grips with every aspect of their finances, not because finance is inherently fascinating to everyone, but so they have enough money for the things that really matter to them in life.

Photo by rupixen.com on Unsplash

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With bills soaring, there has arguably never been a better time to get on top of your finances.

The internet has some great money tips and advice to keep more of your hard-earned cash in your pocket but finding it can be like searching for a needle in a haystack at times.

That’s why we have decided to do that for you. Here are some great money stories that we hope will inspire you and, most importantly, save you or make you money.

How to save money on childcare

It is a rising issue which millions of parents have to deal with every day – how do you have kids and maintain a two-income family? Childcare costs have become so outrageous, calls are growing for the Government to reform the sector to allow bigger minder to child ratios.

But until that reform happens (if it ever does) parents need to find ways to cut the cost of childcare now. Harriet Myer writes for The Guardian on the subject and she’s got some great ideas.

Parents can make use of free childcare hours already available, there is tax-free money available too, and those on Universal Credit can get extra help. Plus, local community support could prove invaluable at the moment.

Cheap or free holiday activities are another good money saver to occupy kids’ time, plus nanny sharing is a growing trend allowing multiple families to split the cost. Finally, turning to family – particularly grandparents – is a go to for many who have the option available to them.

Unpopular mortgages that save you £250

Mortgage rates have been big in the news recently after the disastrous Mini Budget which sent rates soaring, making costs for homebuyers significantly more painful.

But what if you could save £250 a month on a mortgage instead? Rachel Mortimer, writing in The Telegraph, looks at just that.

Tracker mortgages, she says, have seen a big influx in buyers as borrowers look to bet on the possibility that rates could in fact come down. Tracker mortgages work differently to typical fixed-rate deals in that their interest rises and falls as the Bank of England base rate moves.

While the rate is going up at the moment, there’s a possibility that it could be coming back down by next year if the country goes into recession, which could make these “unpopular” deals a lot better value than being stuck on a high fixed rate.

Who do you go to for money advice?

That’s the question posed in a piece in The Times by Tom Howard, who looks at research from accounting firm Deloitte. The survey suggests money expert Martin Lewis is more trusted than banks for money advice by the public.

Just under half (47%) say they’d go to the Money Saving Expert guru, matched by those who ask for help from friends or family. This compares to just 41% who’d consider using information and resources from their bank for help with their money.

The research curiously finds that despite this reluctance, nearly nine in 10 who did seek help from their bank found that help useful. Of course, you could just sign up to the Mouthy Money newsletter, which is packed full of weekly money stories to help your personal finance journey too! Sign up on the box in the middle of this page.

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Over 14.2 million adults in the UK are in debt, this is equivalent to more than a quarter of the UK adult population, yet debt is still very much a taboo subject people avoid discussing.

Why is something that impacts so many of us so difficult to discuss? The stigma of debt and its negative emotions can be pretty debilitating and prevent people from seeking the help they need to address their debt problem. The shame and the fear of debt often leave people feeling alone and isolated.

There’s an old saying; a problem shared is a problem halved, and while the person you confide in may not literally be able to halve your debt, they can help you think of practical solutions to tackle your debt, provide you with emotional support, and point you in the direction of relevant services to assist tackling your debt.

OK, now you’re convinced it’s time to speak to a loved one about your debt, but how do I start the conversation, you ask? Here are a few practical tips to help you begin the conversation.

1) Get clear on your debt

Before approaching your loved one, gather your thoughts and facts so that you’re ready to answer any questions that they may have about your debt.

Taking time to gather your thoughts and understand exactly where you currently stand will help bring you clarity and take stock of your current financial position.

How much money do you owe, and to who?

Have you been keeping up with repayments?

Are there any debts that have progressed to debt collections?

What have you done so far to tackle the debt?

2) Understand what you need

What do you want to get from this conversation with a loved one? Is it support in coming up with a plan to tackle the debt? Is it an accountability partner? Are you in need of financial advice?

Be clear on your needs so that when you initiate the conversation with your loved one, not only can you share your situation with them, but you can also tell them how they can support you on your journey.

3) Find the right time

It’s challenging to initiate a conversation about debt, and there is never really the “right time” to start the conversation. That said, while there isn’t a right time to have the conversation, there’s undoubtedly a wrong time.

Find a private space to talk, ensure you’ll have sufficient time for the conversation, and also choose a time when you’re on good terms. 

 4) Keep it real

When speaking to a loved one, it’s natural to want to protect them from the truth; however, doing this will not help you in the long run. Be open and transparent and share the complete picture of your debt with them. This will give them a full view of where you are and equip them to support you.

For example, the advice a loved one may give you if you’re in £5,000 debt may be significantly different from the advice they would give you at £25,000. Don’t share a partial truth.

Photo by Priscilla Du Preez on Unsplash

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So-called social media influencers have come under fire for promoting untested financial hacks and little-known cryptocurrencies on social media platforms.

The financial regulator the Financial Conduct Authority (FCA) recently criticised Kim Kardashian for presenting an untested cryptocurrency on her Instagram followed by 250 million people.

Should you follow financial advice on social media?

Kardashian advertised virtual token ‘Ethereum Max’ in June in a story on Instagram account.

Charles Randell, FCA chairman, said: “There is no shortage of stories of people who have lost savings by being lured into the cryptobubble with delusions of quick riches.”

“Around 2.3 million Britons currently hold this type of token, out of which 14% also use credit to purchase them, “thereby increasing the exposure to loss.”

“Very vulnerable people may be misled into investing in crypto assets, and suffer what can be devastating losses,” said John Young, a legal partner at law firm Kingsley Napley.

Trusting financial advice on social media, or borrowing money to invest in crypto assets is “a recipe for disaster,” he added.

Assuming that a price rise in Ethereum Max in June was triggered by Kardashian’s post, Young believes people that invested in the token may have lost money.

“A significant amount of money, and not only that, but the volumes are so thin, that they might not even be able to sell their coins at all if they wanted to,” he said.

Is ‘Finance TikTok’ all a scam?

Kim Kardashian is not the only one to promote financial tips. The social media platform TikTok is well-known for its #stockTok hacks. But how much can we learn from a video of only three minutes?

Tiktok accounts such as sarafinance, johnefinance or teaching.finance currently have millions of followers. They are providing young people on TikTok with advice on how to increase credit scores, buy a house or own cryptocurrency.

However, behind this financial trend of “how to make money fast”, scammers can pay influencers to present unreliable money hacks.

That is why the FCA advises against following influencers’ tips on investing in speculative crypto tokens, as they are not regulated.

Who should you trust for financial advice?

There are very few sources of good financial advice for cryptocurrencies, partly because of the nature of the assets.

If you want to invest in cryptocurrencies, Young advises to treat it as “a bit of fun, but not as a serious investment,” unless you can afford to lose money.

He added: “It’s really not a space for small retail investors, particularly those who are betting more than they can afford to lose.”

If you are looking to invest more broadly to save and grow your wealth for the future, a good place to start can be robo advice companies. You can also look to get more traditional advice from a regulated financial adviser, but this can be expensive for someone just getting started.

Photo by Eva Rinaldi from Flickr

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