JP Morgan has produced a white paper entitled changing fortunes: setting guidelines for financial well being in the UK. It is concerned with the nation’s deteriorating personal finance situation. They have proposed 5 financial steps for healthy financial living which are:
- Arrange life/income insurance
- Build a rainy-day cash fund
- Pay off expensive debt
- Start an ISA and pension
- Review your position
All sounds pretty straight forward enough. To offer some guidance JP Morgan have produced this Debt Obesity Scale which shows how much debt is too much. It can be found here.
The input screen is very simple:
The results screen (below) shows your total of secured debt and total of unsecured debt as a percentage of total income and then shows your position on a graph.
I’m unsure how much help this may be but credit to JP Morgan the tool is very easy to use and they are trying to do something to highlight what could be a major problem.
