More people seeking debt advice due to rising interest rates
With the recent announcement of rising interest rates, it is inevitable that thousands of people will be seeking debt advice in the near future.
The Financial Services Authority has pointed out that debt in the United Kingdom has reached its highest ever level. They have emphasised that families are more at risk than ever of struggling to make ends meet. Mortgage repossessions have risen by 65% in one year alone and people are finding it more and more difficult to manage their accumulation of bills which leave them lurking in the shadow of debt.
In 2006, debt rose to the point where 17,000 people had their homes repossessed. This is the highest record of repossessions in the last five years and this increase is set to continue right into 2008
To enter the homeowners market, families are often enticed to live beyond their means due to the desire of the mortgage lenders to loan increasingly large sums. By arranging mortgages based on up to six times a couple’s income, credit is being often being handed to families who are not financially capable of being able to cope with the repayments.
The total amount of personal debt in the UK has soared to a whopping £1.3 trillion and bankruptcy has risen rapidly since 2005. Credit reference agencies are recording droves of late payments from people who are unable to meet the monthly fees of their creditors.
Prevention is better than cure so do not be tempted to take on any debt which will involve long term commitment. Unless you can see a positive way of increasing your income quickly, avoid putting yourself at risk of becoming black listed or homeless as it can take minutes to put yourself into financial hardship but years to fully recover.
Useful links
Debt Free Direct offer the best advice on becoming Debt Free including advice as to whether bankruptcy is the best debt solution.
Finance News posted on 30/05/2007 15:03:10
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