Since the onset of the global financial meltdown, there has been a noticeable increase in the number of UK residents seeking free debt advice from specialist providers. Since the middle of last year, the effects of the credit crunch have taken hold, with rising unemployment and falling house prices all adding to the misery. Growing numbers of consumers are finding themselves in serious financial difficulty and are speaking to Debt Management companies about the alternative solutions, in an effort to get out of debt.
Debt advice specialists have confirmed that they have been swamped with enquiries from consumers, with out of control borrowings, that are falling behind with monthly repayments, and in some cases in danger of loosing their homes. The most common debt problems have been caused by excessive personal loans, store cards and catalogues and unmanageable credit card debt. Many people ran up these debts when times were good, and the country was in a boom period. Now that the recession is starting to bite, the large debts that people have committed themselves to, are coming back to haunt them.
Nathan Gladwell from Chiltern, the UK’s leading debt solutions provider, had this to say about the situation “We are concerned. Consumers are struggling under an avalanche of debt, and yet at the same time they have to deal with higher travelling and food costs, as well as increases in council tax and escalating utility bills. The plain fact of the matter is that some people simply can’t cope and they are cracking under the pressure of it all.”
There is help available, and a number of different institutions that can offer free debt advice and possible solutions for consumers that have become over committed. In the past, the most common solution was a debt consolidation loan, but since the credit crunch, and the decline in the availability of finance, they have been very difficult to arrange. The alternatives include Debt Management Plans and IVAs – also known as Individual Voluntary Arrangements (for consumers living in Scotland, Trust Deeds offer the alternative to IVAs). These programmes will allow a consumer to consolidate their debts, into an affordable single payment, without having to take out a loan.
The future prospects do not look good, with many economists predicting that the recession could last for another year, and that unemployment may top the 3 million mark before things start to improve. The most important thing to remember, if you do find yourself in financial difficulty, is to act now, before your situation gets any worse. Chiltern specialise in providing debt advice on all of the possible solutions available, including IVAs, Debt Management Plans, Trust Deeds and Debt Consolidation Loans.
Mr Gladwell went on to caution against ignoring your debt problems, or burying your head in the sand; “If you are falling behind with your monthly repayments, or your debt problems are giving you sleepless nights, don’t leave it too late. It is important that you get some free debt advice now, so that you can solve your immediate financial problems, and then you can start to get on with living your life again.”