First could be Birmingham under the guise of the West Midlands region

First could be Birmingham, under the guise of the West Midlands region.The fashionable political mantra this time is devolution. Local markets, which for more than a century had served the economies around Glasgow, Manchester, Leeds, Birmingham and Bristol were swept away.Now Ms Hewitt is encouraging the DTI’s local agencies to assess the feasibility of launching low-cost, interest-based, share-trading systems regionally. Like most financial columnists, I have had my run-ins with Patricia Hewitt, the Secretary of State for Trade and Industry, but I am more than delighted to applaud her latest initiative.
I have long championed the cause of regional stock exchanges, abandoned 30 years ago as part of Britain’s preparation for entry into the European Union. Now I pay the creditors a nominal sum, though they won’t get all their money back until I’m 240.”. “They took over negotiations with the lenders, persuading them I did not have money. Then we ran out of money.”Mr Cook ignored demands for repayment for six months “I went to Citizens Advice in desperation,” he said. I made the classic mistake, raising funds from a mass of sources.

We used loans to help pay off others, as little as possible to each. “The owners of the park let us occupy a rundown site, and we could survive only by borrowing. A few months later, the foundations shifted, and the roof caved in. The insurers refused to pay because the site was in bad condition.”I had no house, little income and a massive rising debt,” Mr Cook said. I was in my late fifties and couldn’t get a job, and we bought a mobile home in a caravan park and lived on our capital. I was sure something would turn up.”It did, a German tax demand for £6,000 Mr Cook borrowed the money, using his home as collateral.

Mr Cook said: “A recession hit Germany in 1996 and property prices dropped Worse still, the deutschemark had plummeted We arrived in Britain with only £50,000. Mr Cook, from Bodmin Moor in Cornwall, had run two small businesses in Germany, but came home to retire in Britain.He had taken a mortgage on his house in Germany to help finance an airport shop in Silt. Supermarket own brands save money.* Start a regular savings plan, no matter how modest, as a cushion against unforeseen expenses.’I won’t be able to repay all our debts until I’m 240 years old’Bad luck, bad timing and a belief that something would turn up are what Michael Cook blames for the six years of financial hell he and his wife, Hilde, endured. You may be able to claim tax relief on work-related expenses.* Find out from the tax office if you are due for working tax, child tax or pensions credits.* Use direct debits, which give small discounts.* Make managing money a team game: educate your family to know what they are doing.* Shop around, especially for annual expenses such as car and household insurance. Allow for irregular bills and expenses.* If the sums do not add up, tell your lenders immediately.* Keep your own accounts and always check your bank statement.* Check with your local tax office that you have the right tax code. Try to go through similar exercises with smaller purchases.* The first step to coping with debt is discovering the facts: how much do you owe and what is your income?* Draw up a monthly budget to show everything you spend, including often-overlooked lump-sum expenses such as council tax, water rates and car maintenance. Getting independent outside help, sorting out how much debt there is – and how much people can afford to repay – can start to solve the problem.