A period of high personal expenditure, debt from Christmas spending can often stretch out into coming years, or even months. Personal Debt management company Debt Options give their reaction.
(1888PressRelease) February 05, 2011 - Debt Options gave their reaction today to news that many in the UK are still struggling with tremendously high levels of personal debt. Research by the UK government's Insolvency Service showed that 4 out of every 10 UK consumers are still repaying debts accrued from Christmas 2009, without counting any from the festive season just gone. Additionally, figures released by the Bank of England showed that personal borrowing had already increased by £300m by October 2010 and then by another £100m in November. Overall, the new research indicated a substantial number of UK consumers are entering the New Year with serious debt problems.
"We are certainly speaking to people who are still struggling to pay off credit agreements from the Christmas before last. In the meantime, they have found it increasingly difficult to keep up with their everyday needs. Some have suffered from a sudden change in circumstances, for example, redundancies coupled with a challenging job market over the last few years. Another problem can be the nature of the debts, as in escalating multiple debts. For example, someone may have a regular income, but a revolving round of multiple credit obligations and compound interest makes it very challenging to pay on time and manage regular bills. Special occasions like the Christmas season can just tip the balance, leaving them entering January in a financial situation which then becomes more and more unmanageable".
The Bank of England's figures revealed the massive scale of UK personal borrowing, with a net repayment across the nation of £100m in November 2010 alone. A £100m increase in credit card borrowing in November represented 50% of the total repaid towards loans and advances in that same month. The national financial outlook was summarised by Steven Steele, CEO of the Government's Insolvency Service as "high" levels of personal debt. The Debt Options team moved on to talk about one of the more disturbing trends in recent times:
"One of the more concerning aspects of the last few years has been a rise in the activities of illegal money lenders - these are dangerous loan sharks. Instead, we are here to give people with serious debt problems advice on the legal, safe ways to end their debts. There are various methods, such as Debt Management Plans, Trust Deeds and IVAs and they all benefit from an intrinsic level of protection for your everyday needs. When we come across cases of multiple debts such as credit cards combined with overdrafts, store cards, loans and so on, IVAs can often be a particularly appropriate solution. They are precisely designed to end three or more debts normally totalling at least £15,000. Of course, we don't just help people with IVAs. Our advice is impartial, and we will give our honest professional opinion on all of the available legal debt solutions".
Anyone managing debt problems of any kind should contact the team for courteous, non-judgemental and immediate free advice. Call the freephone advice line on 0800 234 3605 or send an email at http://www.debtoptions.co.uk/contact-us . Debt Options are not affiliated to any lender, meaning they not only advise on IVAs but will offer help to understand all the major legal debt solutions.
A period of high personal expenditure, debt from Christmas spending can often stretch out into coming years, or even months. Personal Debt management company Debt Options give their reaction. 
Satisfied Users & 
Approved Press Releases
Print
Email
Report Spam