Debt Advisers stress importance of timely debt advice
Released
on: January 5, 2009, 7:20 am
Press
Release Author: Debt
Advisers Direct
Industry:
Financial
Press
Release Summary: Debt Advisers Direct remind consumers with debt
problems of the importance of seeking debt advice early on, before
their finances are further affected by the recession.
Press
Release Body: Commenting on the nation's economic troubles, Debt
Advisers Direct stressed the importance of seeking debt
advice in time, before debt problems can escalate out of control.
“Whatever
the economic climate, it always makes sense to address debts at
the first sign of trouble,” said a spokesperson for the
company. “During times of economic uncertainty, it’s
more important than ever.
“The
problems in the housing market alone pose a significant threat
to the livelihoods of people in all walks of life. What was initially
seen as an issue for estate agents has grown to affect builders,
movers, decorators, furniture stores and so on – after months
of negative news from companies directly linked to the housing
market, we’re now hearing of problems in a much wider range
of industries.
“With
so many either out of work or facing the possibility of unemployment,
people are spending less and problems in the housing industry
are spilling over into the high street, placing even more jobs
at risk – at a time when new employment may be hard to find.
“Coping
with a period of reduced income is never easy, but people with
high levels of debt are far more likely to experience financial
problems almost as soon as their income drops.
“This
underlines the need to tackle debt problems sooner, rather than
later. Many people with smaller debt problems may find a chat
with a debt adviser could help them get on top of their finances
without making any major lifestyle changes. Once the adviser understands
their financial circumstances, they should be able to provide
some budgeting advice and suggest practical ways of reducing their
level of debt.
“When
it comes to more serious financial problems, however, many people
are put off by the sheer size of their debts. Someone who owes
tens of thousands of pounds may not feel there’s anything
they can do to make an appreciable ‘dent’ in their
debts.”
In most cases this is unlikely to be true: “However much
they owe, they may still have a range of options, depending on
their circumstances. A debt
consolidation mortgage, for example, could be right for someone
who wants to reduce their monthly outgoings and simplify their
finances, while an IVA
(Individual Voluntary Arrangement) could help someone who literally
can’t keep up with their debt repayments – and who
can’t realistically expect to repay their debts in a reasonable
timeframe.
“We
were very pleased to see the emphasis which the Chancellor’s
Pre-Budget Report placed on debt advice – the Government
is dedicating more than £15 million of additional funding
to ensure people can access debt advice when they need it. Similarly,
we were pleased to see certain credit card providers and mortgage
lenders extending a ‘grace period’ to people who fall
behind on their repayments.
“Even so, we remind borrowers how important it is to talk
to a debt adviser before things reach the stage where they’re
missing payments of any kind: taking steps to tackle their debt
today is virtually certain to improve their chances of getting
through the recession with their finances in a good state.”
Web
Site: http://www.debtadvisersdirect.co.uk
Contact
Details: Debt Advisers Direct
Carlton House
Vere Street
Salford
M50 2GQ
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