Debt Advice to Deal with your Debts by Declan Murray
According to recent statistics published by Credit Action, the combined personal debt level in the UK has risen to £1.4 trillion. This figure is made up of personal loans, credit card and other unsecured debts, and mortgages. The total amount lent out to consumers had increased by £2 billion by the end of February 2011, and consumer credit lending had increased by £0.8 billion. More and more people are seeking out specialist debt advice to help them deal with their debts and manage their futures.
Personal debt levels have increased for a number of reasons. Energy bills have risen in recent years, due to longer lasting and more severe winters as well as the increased charges levied by the energy companies. Incomes have not risen as sharply as they did before the financial crisis erupted in 2007, and in some cases have even fallen. Inflation is becoming increasingly concerning and state services are being rolled back in many areas, shifting the cost of public services increasingly to individuals.
Excluding mortgages, the average UK household debt stands at £8,428. Including mortgages, this rises to £57,687. If you are starting to experience unmanageable levels of debt, seeking debt advice before things get out of hand is strongly advised. The problems facing many individuals are clear from the figures: 337 people on average are made bankrupt or declared insolvent every day in the United Kingdom. Seeking specialist debt advice from the Debt Advice Group can help you steer your finances back in the right direction, or stop an uncomfortable situation from deteriorating.
There are a number of potential options open to you in dealing with your debt. A debt management plan typically brings down the amount you have to pay in monthly instalments. The advantage of a debt management plan is that your debts are bundled together by a provider who negotiates with your creditors to come up with a single payment. This single payment is made in place of all the individual demands for payment made by your different creditors. In addition, it consolidates all the different interest charges into one set interest rate, which is normally relatively low.
Debt consolidation programmes are another way in which you can repay your debts without resorting to bankruptcy or personal insolvency. Debt consolidation programmes involve a debt consolidation loan: this loan is used to pay off your debts by bundling them together in a single package. The benefit of this is that it means you can concentrate on making one regular payment rather than having to deal with demands for payment from different companies and credit providers.
Your personal debt can still continue to rise however, even if you have taken measures to deal with existing debts. Nearly 1,600 people lose their jobs every day and rising costs for food, fuel and other goods are a fact of life. If you are able to do so, you are advised to keep some savings ready in case of sudden hardship, or to turn to the debt specialists at the Debt Advice Group if you are running into financial difficulties.
About the Author
Declan Murray is an experienced advisor and author in Debt Advice Group created to help people in serious debt get good, honest, specialist advice. It is an organisation having specialist for debt help and providing advice for debt reduction.