Highest Recorded Level Of Debtposted on 9 June 2011 | posted in General Category | ( 2 ) CommentsAccording to R3, the trade body for insolvency professionals, the number of people experiencing financial distress has increased to the highest level recorded. 8m people are due to go into their overdraft this month, with 2m believing that they will go into an unauthorised overdraft position. The findings also show that 6m people are currently behind with some of their bills and payments – a jump of 2m over the last quarter. Integrity has seen a steady increase in household debt levels since April 2011 with more and more people falling behind with repayments on borrowing and bills. Worryingly is the amount of people currently paying an interest only mortgage, and with interest rates set to rise soon, this is only going to add to bigger problems in regards to personal finances in the UK. Advisors at Integrity commented "Currently we have seen an increase in the number of people that are struggling with fixed rate or variable rate mortgages over the last few months. People who are paying an interest only mortgage are goign toget hit hard when interest rates rise and this will add to the number of home repossessions in the UK." "Rises in household energy bills and the food costs are gradually making the personal debt time bomb bigger across the UK and something clearly needs to be done. The recent price hike by a well known energy company is completely un-called for and maybe it's time the government stepped in. Sooner or later prices rises will get out of control and unless something is done, the effect on the economy is going to be disasterous." This all means that many people are turning to debt to cover the shortfall in their household incomes. Estmated figures now show that one in eight Britons are falling behind with their bills as they struggle to cope with the rising cost of living.The problem has been highlighted by R3 who work with government, key policy makers, opinion formers and the media. Frances Coulson, R3 President, said: “These figures make for worrying reading. It is clear that many have found themselves in a position whereby they have to go into and often exceed their agreed overdraft in order to keep on top of their bills and debt repayments. Unfortunately, more often than not this leads to bank charges, which further deplete the amount available for bills. It’s a catch-22 situation which can result in debts snowballing." Integrity urges anyone struggling with household bills and mortgage arrears to contatc them for professional and impartial debt advice. Thinking that it will go away is not the answer and people who can't keep to a budget may not think they need help but in reality they do. Call us now on 01743 272900 Share this blog entry:
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Comments ( 2 ) - Add Your Comment
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Unfortunately that is common place Nick and you are not alone in that situation. We have thousands of people who come to us with the same problem, and we deal with this example on a daily basis.
by Darren on 9 June 2011 14:5 Thanks for your comment. |
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