Debt Advice Important For Struggling Borrowers
on: May 7, 2009, 8:51 am
Author: Melanie Taylor
to news that total personal debt levels in the UK have risen over
the past year, Debt Advisers Direct have warned of the dangers
of getting into debt in this difficult time for the economy, and
advised anyone who finds themselves struggling to repay debt to
seek expert debt
lending figures released by the Bank of England this week revealed
that total personal debt in the UK stood at £1.458 trillion
at the end of February - a rise of £34 billion compared
with the previous year.
means that despite increased caution amongst financial institutions
with regard to lending, the average UK adult has taken on approximately
£680 in additional credit over the past year.
Bank of England statistics also show that the rate at which personal
debt is growing has slowed compared with February 2008, when the
total increased by £111 billion compared with the previous
spokesperson for Debt Advisers Direct commented: "A £34
billion increase in total personal debt may surprise some people,
given the relatively cautious nature of the lending industry over
the past 18 months, even though it is only around a third of the
levels seen in the previous year.
the one hand, it may suggest that the market for loans and mortgages
is not as difficult as many people believed. Lenders have still
issued a relatively large amount of money in the past year.
the other hand, it could also indicate that people are making
more use of the credit they already had. For example, whereas
people may have used their credit cards and overdrafts sparingly
in the past, many people who have been put under pressure by the
economic downturn may have found it necessary to spend more on
is fine in the short term, so long as those debts are repaid,
but if the borrower can not afford to repay those debts in full,
then the situation can become more serious."
spokesperson added that consumers could benefit from avoiding
getting into debt wherever possible, and ensuring that they promptly
pay back any credit they do use.
more people currently at increased risk of redundancy or a reduction
in income, it makes sense for people to ensure that their finances
are well prepared for the future. For most people, that should
involve reducing debts wherever possible.
course, that is difficult for people whose finances are already
stretched to their limits. We have seen massive rises in many
essential costs of living over the last 18 months, which have
led to many people falling behind on their commitments.
where a professional debt adviser can help. There are a number
of debt solutions that can help people in difficult financial
situations to reduce their debts and make their monthly outgoings
a lot more manageable. It's important that anyone who finds themselves
struggling to repay their debts seeks debt advice as early as possible
to prevent the problem from becoming any worse."
Contact Details: Debt Advisers Direct (http://www.debtadvisersdirect.co.uk/)
Melanie Taylor (0845 056 6480)
South Langworthy Road