Saturday, May 06, 2006

The Price of Fame

In a week where TV quiz celebrity, Carol Voorderman, is under pressure to stop using her “trusted” reputation to flog the naïve so-called cheap loans on television, there’s news that personal bankruptcies and company failures are growing at an alarming rate.

The Times reports today: “Leading accountants joined politicians to sound warnings over the threat from a “what the hell” culture of “spend now, worry later” as the number of personal bankruptcies in England and Wales leapt to 23,251 in the first quarter, the highest number since the Sixties.”

Voorderman is however so successful at attracting new business for her sponsors that they have stated that they aim to continue using her in their advertisements. She has declined, quite sensibly to comment and I’m sure that the size of her contract would make her most reluctant to consider quitting a role which delivers her a little extra money to use to “splash out” on something special.

You can find the story in "Kent on Saturday."

16 comments:

Anonymous said...

A good forum for money (see debt free wannabe) is http://forums.moneysavingexpert.com

Anonymous said...

I think many would share the concern about celebrities promoting products or services that can lead indivduals into personal difficulty. But what about the person behind this website - Simon Moores - and his close and heavy involvement with the Tory Party? A party which, under their manic leader, Thatcher, encouraged an attitude to pension provision and mortgage repayment provision that has led so many into hardship. Where should blame begin and end?

Anonymous said...

Pension provision? Mortgage provision? The Thatcher years saw the geatest leap in home ownership this country has ever seen. The pensions crisis comes well after the Thatcher years, although reforms were begun then. Believe it or not, the habit of blaming previous Tory governments for all our ills is wearing a little thin!

Chris Wells

Andy Pandy said...

Advertising is soooo 90's! I think there must there must be a relationship between consumer IQ and revenue generated from advertising.

Anonymous said...

I am sorry Mr Wells, but I disagree with your version of history, and I have not seen in these comments any attempt to blame Thatcher for all of the nation's ills, although...

Dave Chamberlain said...

Though the pension crisis did start with the death of Robert Maxwell in 1991 and political analysts must have seen it coming well in advance but for political reasons kept quiet about it.

Anonymous said...

And I think 1991 was 6 years before the end of the 18 awful years of Tory rule. Tory politicians kept quiet because so many of them benefitted personally from the profits made by the companies that conned the public.

Old Codger said...

Hold on everyone, didn't Mr Brown start taking a great deal of money out of the savings and pensions industry a few years ago to the tune of £5 billion per year. My personal savings plans via endowments have nosedived as a result.
This Govt has had 9 years to enact sensible legislation to protect pensions and encourage saving but has rather discouraged it by keeping the state pension low and topping it up to a guarranteed minimum by extra state benefit. Result is why save?
At the same time Govt have made it easier for the spendthrifts to evade their debts by easing personal bankruptcy.

I see no diiference in moral terms between stealing from a shop and spending money on credit and then effectively refusing to pay it back. We have many people in our society who have no moral integrity and are on the fiddle in one way or another; the rise in personal bankruptcy is just another
way of fiddling the 'system' while the rest of us pay the cost.

James Maskell said...

Some people do have this presumption that they can put all this money on their credit cards and they'll be alright. The fact is that in todays Britain, it isnt alright.

I have a strong belief that credit cards arent worth the hassle unless absolutely necessary. Maybe thats because I have no use for one yet but nonetheless, I dont understand why people spend so much on them. One trillion pounds of debt on credit cards!!! Its insane and is a number you cant possibly contemplate. Why are people so irresponsible with their money? If money is tight, why put it on your credit card? My belief is that you should only spend the money you have.

DrMoores said...

An interesting comment from earlier today on my part in politics, however modest. I would ask you to consider the equally close incolvement with the Labour Party - up to and into No10 - which I walked away from in 2002 and you can see why if you look around you today.

I'm not sure what my politics, left or right leaning has to do with the question of Carol Voorderman promoting cheap loans.. unless your'e thinking of cheap politics as an equally insidious practise?

Anonymous said...

Perhaps the politically indoctrinated have lost their capacity for objective criticism, Dr Moores. It is not the "party" sound Englishmen have supported but the policies and management in Government. If governance is inept, flawed and incompetent it is inept, flawed and incompetent, no matter what political party is in control!

Anonymous said...

You should only spend the money you have, that's okay James Maskell but in a society that has stifled wages and increased taxation, especially council tax. Years a go the longer hours you worked the more one was paid, now employers expect you to work for nothing for longer or you're not a team player, you'll be brushed over for promotion (to earn more), you're not committed enough and all that corporate bullcrap. As for Old Codger, when I grew up in the early 80s (I was 18 in 1983) it was the first time people had access to easy money. Seeing how 18 years olds tend to live for the day and don't realize that 10 years ahead isn't really that long a time (it seems forever then), no one had experienced such easy credit terms before and there was no guidance from parents who hadn't experienced such terms, it's no wonder that the flash point came when my generation (fed easy credit terms no doubt by Old Codger's generation) ended up in a credit mess. I don't deny personal responsibility but it takes two to tango. I seriously object to Old Codger calling people in credit difficulties in all but name, criminals.

James Maskell said...

Does anonymous 9:57pm think I live in an alternate universe? I have to pay taxes like everyone else. I get a wage as anyone else does. I get the increased cost of living on top. What makes you think I have it anything but harder? I am a young person living wholly independently and on my income, my money only goes so far. I have never claimed a week in benefits.

Old Codger said...

I,m not calling people incredit difficulties, criminals, anon of 9:57.
With a young family of 4 children in the 70s and in rented income, I fell into the Access Card trap. I learned the hard way what 29.9% APR meant. It took me 4 years of hard economy in the domestic budget, moonlighting and taking on an allottment to grow food. I didn't know what it was like to drive anything other than 10 year old bangers and a tent on often wet fields was the only way to have a holiday. We worked our way out of debt and then opted out of the 'gotta have it now, pay later' world by simply doing without until we had the means to pay.
My issue is with those who are not prepared to work their way of debt or do without but take the easy option given them by this Govt to walk away from their debts. Surely the message 'you spent it, now pay it back' is clear. If you evade doing that, then how different is that from evading the check-out with your items of clothing: it used to be called 'theft'.

Anonymous said...

James Maskell, you stated 'My belief is that you should only spend the money you have.' maybe you haven't had a family yet, I don't know, but what I do know is my wife and I lost £900 in income in 1995 when our first daughter was born who needed special needs help (no Government help then too, no working tax credit, no family to help)and whilst we made extensive cuts when one has to decide whether to pay to have the roof fixed or pay the council tax and electric bill something ends up defaulting to credit. We built up a years worth of income in debt (£20K+) but over 10 years. If you've gotta pay it you've gotta pay it even if you don't have the money, or go to prison or have you electric cut off. As for Old Codger, I'm where you were at by the sounds of it, glad you got through.

James Maskell said...

I dont think you understand my point. I said should. I also said "I have a strong belief that credit cards arent worth the hassle unless absolutely necessary". In your case a credit facility was useful and was necessary. Im talking about those who buy luxuries when they dont really need it and put it on their credit card, then complain later when they realise how much money they have to repay. I stand by what I said and think Im right here. Too many people in this country use credit cards unnecessarily, leading to eventual bankruptcy. This is something parents should be drilling their children in, budgeting and being disciplined with money.