Council tax bills are set to increase next year to a record £1,500, causing widespread concern over household debt management issues.
Over the eleven years that the Labour government have been in power, council tax bills have more than doubled from an average of just £688 – to a whopping £1,500.
This has sparked furious responses from opposition ministers, who have slammed the move which could fuel even further debt problems for overstretched household finances.
Debt Advice organisations have also expressed concern that there will be many more people struggling with their debt management issues and will need to seek debt help, as a result of this latest move.
Ivan Cooper, Chairman at the UK’s leading debt management firm Chiltern, said: “On top of recent announcements that water rates may rise, household finances are set to take another battering from increased council taxes – both of which could push someone’s debt problems over the edge.
“With finances already under pressure, debt management issues could increase as people struggle to maintain their credit commitments. many will need to seek impartial debt help to resolve issues.”
Debt help organisations offer a number of ways for people who are struggling with their unsecured balances (overdrafts, personal loans, credit card debts etc) to regain control of their finances. Most professional debt help solutions enable council tax and other priority payments to be maintained, as these are budgeted for accordingly from the household budget. Reputable debt advice organisations include The Debt People, Hamilton Locke and Chiltern.
Professional debt help solutions include Debt Management Plans (DMPs), Individual Voluntary Arrangements (IVAs) and Trust Deeds.
A Debt Management Plan (DMP) offers a flexible way for multiple unsecured debts to be repayed with just a single monthly payment. The arrangement is flexible as the monthly payment can be altered according to your changing financial situation.
It is also calculated to be affordable as the monthly payment is based on how much “disposable income” is available once priority payments have been accounted for – i.e. mortgage/rent, food, council tax etc.
The single monthly payment is paid to your debt management provider who distributes it on a pro rata basis to the peopl eyou owe money to.
Payments towards your debts are then rescheduled over a longer period of time to make them more affordable.
An IVA is similar to a Debt Management Plan, but is repaid over a fixed period of time – which is normally within five years. After this time all remaining unsecured debts are effectively written off.
For immediate debt advice, or for further information on Debt Management Plans and other debt help solutions, please call the number at the top of this page.