Another day goes by and the nation sees itself further in debt. According to the latest figures, the collective debt of personal debts in Britain amounts to £1,460bn, which means as individuals, people owe more than what the whole country produces in a year.
A more disturbing fact is that the debt problem is only getting worse. The figures for March 2010 show that personal debt further increased by £0.6bn. The interest payments on that debt were £67.8bn in the last year alone. What this means is that the average household now owes £57,950 while the average amount owed by every UK adult is £30,258. Further, the average interest being paid by each household on their debt is about £2,692 each year while £186m-worth of personal interest is paid out each day in the UK.
Apart from mortgages, people also owe an increasing amount on plastic and loans. Studies show that the average consumer borrowing through overdrafts, credit cards, motor and retail finance deals and unsecured personal loans went up to £4,593 per average UK adult at the end of March 2010. Also, a property is repossessed every 11.4 minutes and someone is declared insolvent or bankrupt every 3.69 minutes.
There are various reasons that have contributed to this. The ‘buy now and pay later’ concept is definitely to blame but added to this is the fact that many people have lost their jobs during the recession. Also, the earnings too have taken a nosedive. As a result, people are now in a situation when they are unable to make their monthly payments.
Disturbing as this may sound, what is important to remember is that a bad debt situation can come under control provided you explore all options available. If you are facing serious debt, the first step you should take is to seek debt advice. Most reputed debt management companies in the UK offer debt advice for free. The experts will study your individual situation and suggest whether an informal debt management plan, a debt consolidation loan, or an IVA will help you on the path of recovery or else if everything else fails, you can declare bankruptcy. Seeking debt advice can also help you to understand preventive measures you can take to avoid falling into the debt trap.
I hope you enjoy the weekend and weather and long may it last!
Tags: debt, Debt Advice, Debt Help, debt management, debt management plans, Debt Problems
I’ve been meditating on the exact same thing myself recently. Glad to see someone on the same wavelength! Nice article.