Debt - A Growing Uk Problem
Personal debt is an increasing problem across the United Kingdom with millions of adults affected. According to top debt management consultancy Thomas Charles, over 8m adults each owe unsecured debts amounting to £10,000 or more.
And Scotland compared to other regions of the UK has the highest proportion of adults in debt, at almost 1 in 4. The latest findings follow a survey commissioned by Thomas Charles and carried out by independent research agency YouGov.
The quarterly survey shows debt numbers up by nearly a third on the previous quarter. And when compared to the same period in 2006, the trend is also up, by almost the same amount.
A quarter of the 8.2m adults in debt are struggling to meet repayments, the survey figures reveal. More men have debt of £10,000 or more compared to women. But more women are likely to struggle to meet repayments than men. Regionally, some 40% of London residents with £10,000 or more unsecured debt have problems meeting their repayments. The figure for the rest of the South is around 20%, with Wales and the Midlands 18%.
Thomas Charles & Co Ltd was set up in 2004 and operates throughout England and Wales with its head office in Acton (West London). It has a personal, consultative approach to debt management and focuses primarily on providing formal solutions for debt problems including Individual Voluntary Arrangements (IVAs) and bankruptcy. However, it will also provide advice around informal debt repayment plans where appropriate. It works with third party insolvency practitioners around the UK.
Top Debt Tips from Thomas Charles
Don’t bury your head in the sand. Try working out your financial position using a budget sheet detailing all your incomings and outgoings. Consider transferring credit card debt to a 0% card while you deal with more pressing bills, such as any council tax or mortgage payments. But don’t use this as an excuse to run up more debt elsewhere, and beware of hefty transfer fees.
Don’t take out other loans to pay off the original debt or use a consolidation loan. If you must do this, be disciplined and don’t use the new loan money for anything else. Talk to your creditors about structuring a realistic repayment plan. If you cannot do a repayment plan and you do not want to go bankrupt then try an IVA. Visit IVA.co.uk or call the IVA helpline (0800 197 48 38).
If you want to consider bankruptcy then try the Citizens Advice Bureau (citizensadvice.org.uk)
J Donaldson is a fully qualified CeMAP mortgage advisor and runs Mortgage Advice 4 Free and FreebieAds in his spare time.
Tags: debt, debt advice, Debt Management, debt relief
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admin on February 13th 2008 in Finance
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