The recent statistics released by Credit Action reveal that the total figure for UK personal debt at the end of February 2010 stood at £1,464 billion. This is an increase of £2.1 billion compared to the previous month. The report further highlights that the 12-month growth was 0.9 per cent. It also confirms that consumers now officially owe more money on their debts than the country earns accumulatively through annual GDP.
The poll also reveals the extent to which individuals are in debt and highlights that the people in the UK can combat their growing financial burden by seeking effective debt management help.
Another finding of the report is that the average UK adult owes £30,328, including mortgages, with the average household debt standing at £58,083. Given the fact that the individual figure equals to 132 per cent of average earnings, it is highly unlikely that the people would be able to pay off their debt without an effective debt management plan.
According to Credit Action, at an average, everyday household debt will increase by £0.44, with one person every 3.69 minutes declaring themselves bankrupt or insolvent. It further shows that every working day, 1,000 people are seeking some form of formal debt management in a bid to gain control of their finances.
The findings of the report highlight the need for the people to seek expert debt advice to regain control over their finances and also to plan out a strategy such that they do not fall into the debt trap again. There are also reports to substantiate the fact that people in the UK are hesitant to seek debt management for fear of social stigma. Indeed, a large number of people do not even share their financial problems with their family members. In the light of this, it is important to point out that shutting your eyes to a problem will only compound it further.
The economic climate of the country is such that the number of people in serious debt has reached a record high and so if you are facing financial problem you are not alone. A bad debt situation does not immediately imply that you have been careless with your finances. Everybody is aware that recession has taken its toll and left people facing financial difficulties. There are many reputed companies with impeccable track records offering debt advice for free. Their financial experts would study your problem and recommend a debt solution that is right for you.
There are various debt solutions available to help you get back on the track and these include Debt Management Plan , debt consolidation loans, and IVA Individual Voluntary Arrangement . And if all fails, you can declare bankruptcy and make a fresh start. But first to understand which debt solution is right for you, you can contact us for free debt advice and we will study your situation and recommend a debt solution.