Economic crisis calls for fast action on debt
on: October 16, 2008, 8:08 am
Release Author: Debt
Release Summary: Debt Advisers Direct warn anyone struggling with
debt to seek expert debt advice as soon as possible, as the IMF
predict in a new report that a severe global economic downturn
may be on the horizon if world governments do not act together
to prevent it.
Release Body: Responding to the International Monetary
Fund (IMF)'s report suggesting that the global economic
slowdown is likely to worsen and spread to more economic sectors,
Direct have warned the public that extremely testing
times may be ahead, and people should look to get their finances
in order and clear any debts as soon as possible.
their new Global Financial Stability Report,
the IMF have warned of “growing turmoil”,
saying that the state of the global economy has worsened since
its last assessment in April 2008. They also said that Governments’
willingness to act would be crucial in “bringing about a
return to stability in the international financial system”.
the global economic crisis has so far been mostly limited to the
financial sectors in more developed economies, the IMF
warned that may soon be about to change, with other sectors and
developing economies likely to be affected in the future.
note on the IMF press release said: “financial
institutions in emerging markets, which until recently remained
fairly resilient, will be confronted with a much more challenging
economic environment: A combination of global credit tightening,
and economic slowdown, which could accelerate a downturn in the
domestic credit cycle in some countries. Those economies with
greater reliance on short-term flows or with leveraged banking
systems funded internationally are particularly vulnerable.”
spokesperson for Debt
Advisers Direct said that the threat of financial
hardship applies to everybody – not just people on lower
incomes or those already in debt.
nature of the economic crisis is that many peoples’ jobs
are at risk, and that applies just as much to people earning high
incomes as it does to low earners. At the same time, many costs
of living such as food and energy are still on the rise, so most
of us are likely to feel the squeeze to some extent.
that reason it’s essential that anyone who is currently
struggling financially, particularly those struggling with debt,
seeks the relevant advice as soon as possible.”
Direct spokesperson added that there are a range
of debt solutions available to help people in various financial
situations. “For those with a number of debts, a debt consolidation
loan could be the answer,” he said.
consolidation involves grouping all of your debts into convenient
single monthly payments. It can also reduce interest rates if
you are consolidating high-APR forms of credit such as credit
cards, and it can allow you to reschedule your payments over a
longer period, making your monthly payments lower. However, this
may result in paying more interest in the long term.
for those who want a less formal debt solution, a debt management
plan can reduce your monthly payments to an amount you can afford,
as well as freezing interest and other charges.
"Or for people with debts of over £15,000, an
(Individual Voluntary Arrangement) is an alternative to bankruptcy
which could help you keep your home and other assets."
spokesperson added: “Above all, it’s very important
that anyone struggling with their debts seeks the appropriate
advice immediately, because it’s very possible that things
are going to get even tighter in the coming months.”
helps people with financial difficulties, providing free advice
and tailor-made debt solutions. For more information, contact
Melanie.Taylor@debtadvisersdirect.co.uk (0845 056 6480) or visit
the debtadvisersdirect.co.uk website at http://www.debtadvisersdirect.co.uk/.