Britain is no stranger to the fact that debt is now a harsh reality for many people in their everyday lives.
In the last five years, Britain’s personal debt has grown by half, and there is a stunning £158 billion debt that is now accumulated. The average adult person now probably owes around £3,400 and that doesn’t even include their mortgages. The Treasury, as well as the Bank of England, is easily stating that there is reason for concern right now. With lower interest rates, people have fallen into a false sense of security where they think taking on more debt is all right, so it is time to make sure that you know where you stand with your debt and finances.
For the majority of the country,
families are used to being provided by with two incomes that are coupled by very long working hours. This would seem to create a very rich in cash but low on time society, except that this hasn’t really been able to work the best. There is a very fragile act of trying to balance the income with just how much is being spent by the household, and for quite a few people now, the debt is piling up faster than the money is coming in the door. Too many people think that credit is easy to find, and a great many of the country’s young students are leaving university with ten thousand pounds in debt from student loans that seem easy to come by, when in reality, just depositing for a house would cost up to fifteen thousand pounds, and that isn’t even in the incredibly populous areas.
There is a very large difference between what is overspending manageably and when you are indebted by having too many risky debts
, and far too many people haven’t quite been able to manage that. With the global economic issues now, on top of the Iraq conflict making issues in travel, job loss and consumer spending, it is easy for people to worry and consider using more credit to help get through the crisis. The incomes have dropped for many, and the interests have increased enough to easily make it far too difficult for families to really hold onto their households. People have stopped spending, which has made it harder for leisure jobs to be maintained, which only sends more people into the job market.
- For parents, this can mean quite a bit. They are under quite a good deal of stress to take children to their various activities as well as taking themselves to work and back, and this has caused pressure on making sure that there is a second car for the family. This, unfortunately, may seem like the best idea for the children and parents, but the cost of owning a second car is quite large. There is also the issue with quite a few parents feeling that they cannot spend enough of their time with their children, so they buy the more expensive fads to compensate for that. While that doesn’t seem like it, though, recent reports are revealing that this particular behavior is really causing a great deal of debt as parents give in and some cannot even say no. They also know that bullying from children is a very real concern, so they now find themselves in further debt as they pay off Christmas presents and now the new mobile phone their child must have.
It can be very difficult to hold up this delicate balance between income and debt, so it is very important to know that there are quite a few different events that can change and topple the balance. When something like job loss, bereavement, separation or illness hits, it can change everything and seems to make trying to deal with finances even more difficult. If you’re starting to feel overwhelmed, it is important to know where to get help, and the best way to do that is to look into debt management companies who will help you. However, just know that they will charge large fees in some cases.