After recent Daily Mail statistics regarding consumer insolvency, Debt Options give their advice to those who may be facing further debt.
(1888PressRelease) April 08, 2011 - Independent debt management company Debt Options gave their advice to those needing help following stark debt headlines in the national media. The Daily Mail released news that 337 UK consumers are daily facing insolvency. They also reported personal debts in the UK now stand at £1.4 trillion, outstripping the national GDP over the past year.
Figures from Credit Action confirm the high level of personal debt problems UK consumers are currently facing. 8,004 people seek debt management help from the Citizen's Advice Bureau every working day. The quoted number of 337 daily insolvencies equates to one person for just a second under every 2 minutes of every working day. 87 properties were repossessed daily during the final quarter of last year, which the Daily Mail calculated at one every 17 minutes. There was further bad news for many households, with a reported 1,589 people made redundant daily. 833,000 were also unable to secure a new occupation following at least 12 months unemployment.
"With redundancy, some people find they suddenly need credit card help. There are those who find themselves increasingly relying on the cards for everyday bills. Where they had previously managed repayments, the loss of earnings can obviously have an immediate and devastating impact. The pattern is particularly difficult to sustain, as the interest and charges begin to mount. It can simply become more and more difficult to repay on time".
Financial advice charities reported a recent peak in the number of people seeking online help for debt problems. The number of people needing support is furthermore predicted to increase throughout this year. There are also concerns related to the rising costs of living affecting the ability to manage credit agreements.
"When household finances are already challenging, people often start to make up imbalances between spending and income with more credit. It could be a loan, a credit card, or multiple credit lines. It was always intended to be temporary but over time it becomes more and more necessary to the household budget. For multiple debt problems, an IVA can be helpful, usually if the total amount owed is over £15,000. Providing they are arranged in the consumer's best interests, Individual Voluntary Arrangements should stop creditors actions. Instead they create a single, manageable monthly repayment amount. Once they are agreed, instead of people trying to keep up with multiple creditors' demands, they are handled by a licensed Insolvency Practitioner. This can help re-establish the feeling of being more in control. It can be useful for redundancy and credit card debts in general. A key point to stress is that IVAs are just one of a number of legal debt options. You should always seek impartial professional advice on which is the most appropriate debt management solution for you. We do have information online but there is no substitute for individual advice".
Anyone in the UK facing debt problems can gain immediate, confidential and free advice by calling the Debt Options team on 0800 234 3605 or visiting www.debtoptions.co.uk
After recent Daily Mail statistics regarding consumer insolvency, Debt Options give their advice to those who may be facing further debt. 
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