The Problem of Personal Debt
We live in a 'buy now, pay later,' society. Credit cards, store cards, loans, hire purchase... the fact is that we no longer actually need to have the money in our account to make a purchase.
Great, right?
Well, it can certainly help to make essential purchases. Credit has its place and, used correctly, can actually be a convenient and cost effective way to manage money and make purchases.
However, lenders and consumers alike have abused credit with terrible consequences: the personal debt mountain is now monumental in size. Take a look at some striking figures from Credit Action:
All of those figures are even more shocking when you consider that long term unemployed is also high. Over 860,000 people have been employed for more than 12 months.
So this is the problem, but how do we solve it?
Great, right?
Well, it can certainly help to make essential purchases. Credit has its place and, used correctly, can actually be a convenient and cost effective way to manage money and make purchases.
However, lenders and consumers alike have abused credit with terrible consequences: the personal debt mountain is now monumental in size. Take a look at some striking figures from Credit Action:
- Personal debt in the UK totals £1,451 BILLION!!!
- The average household debt (inclusive of mortgages) is over £55,000.
- There is £174 million paid in personal interest every single day in the UK.
- One person in the UK is declared insolvent every 4.35 minutes.
All of those figures are even more shocking when you consider that long term unemployed is also high. Over 860,000 people have been employed for more than 12 months.
So this is the problem, but how do we solve it?
Debt Solutions
In the UK, there are a number of professional debt solutions available. These include:
If you are struggling with personal debts and you owe more than you can realistically afford to repay, then seeking professional advice is a good first step. With debt management companies like Moneysolve, you can obtain free and confidential advice over the phone to find out what solutions might be available to you. You may even be able to write off your debt completely!
- Informal debt management plan
- Debt consolidation
- IVA
- Bankruptcy
If you are struggling with personal debts and you owe more than you can realistically afford to repay, then seeking professional advice is a good first step. With debt management companies like Moneysolve, you can obtain free and confidential advice over the phone to find out what solutions might be available to you. You may even be able to write off your debt completely!