Warning To Households 'Get On Top Of Your Debt'posted on 4 November 2011 | posted in General Category | ( 0 ) CommentsAs an advisor I see different rises and falls in personal insolvency levels throughout the year, and the current Q3 insolvency stats are warmly welcomed in my office. However I have to issue a stark warning to households... 'Get on top of your debt now, or face mounting problems and financial strain in the year to come.' It may seem harsh for me to say this but quite frankly I feel that more and more people are just pushing personal financial problems under the carpet, in the hope that they just simply disappear. We have seen a respite in personal insolvencies in the Q3 stats with a drop of approx 11%. But this simply does not reflect the state of the nations economic picture currently and people should not be complacent, thinking that becoming accustomed to having large amounts of debt is ok and the way forward. Bankruptcies have fallen by 31.2% compared with the same period last year, and IVAs and DROs have both risen. However this will change when people in IVAs for example start to struggle with the high fees and monthly repayments to the IVA companies, and then have to come out of them still facing big debts and have no choice but to go bankrupt. Add to this the expected interest rate rise next year and continuing hike in household bills and living costs, and the figures change and will move in the other direction. People need to recognise now that they maybe facing a financial problem and seek professional advice to get it sorted before the problem spirals out of control and it's too late. It is now clear and simple fact that the lower and middle classes are facing more and more debt problems and with the cost of living increasing and interest rates due to rise in 2012, then we are sitting on a debt time bomb. The Q3 stats and figures may look good on paper and look positive, but are they really just a fake front of what is to come? I think they are... 2012 will be a turning point for personal finances in the UK. People will either realise that they really need to do something and seek help from professional companies like ourselves, or they will do nothing...Bury their heads in the sand and hope it will go away and the UK will fall in a debt abyss. The choice is in your hands..... (Author: Darren Perks) Share this blog entry:
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