With house prices rising rapidly and demand growing, household debts have doubled in the last decade as many families are falling into the trap of borrowing money.
It has recently been said that British households now owe an average of £54,000; this is an increase from £29,000, ten years ago. In addition to this, the rising cost of energy bills has also become a disturbing factor. Inevitably, this has increased the amount of debt among poorer households which means that many are experiencing financial pandemonium.
Having read this, many of you would feel alarmed by the figures; however, only fewer than 20 percent of nine million people that are trapped in severe debt are getting help to break free. This shocking figure means that only 17% of this group are receiving help whereas 40% said they were not comfortable to talk to their creditors. The remaining 44% felt they didn’t know who to speak to.
While talking about your debts can be worrying and embarrassing, it is wise to remember that the earlier you get advice, the less likely your debts will take control of you. The later you leave this till, the more chances you have of your house being repossessed and even becoming homeless.
Considering payday loans is not the solution either. Payday loans are essentially short term loans as they are designed to give you a little extra money to tide you over till your next payday. The loan is intended to give you enough to get you by until payday rolls around, at which point you would normally pay the money back. Although this sounds attractive, this could seriously affect your ability to borrow in the future. Nowadays many lenders take payday loan applications into account when they decide whether or not to approve your application.
So what’s the solution?
Well we all plan on buying or renting a house or flat at some point but how is this possible when house prices are increasing as rapidly as household debts? Well this is where we step in. With a wealth of experience in the industry, Money Debt & Credit are able to review your financial situation, and help to manage your debts, creating a plan tailored to suit your needs. We provide Debt Management Plans and loans to suit your needs and wants.
Remember to take control of your debt problems today for a brighter future tomorrow.