Last year was a record high for people suffering from debt, as a result from this there has been an unprecedented rise in people claiming insolvencies. January is typically the month that most of us feel the pinch with Christmas just gone a lot of credit cards will have been used and abused for extra food and gifts as well as other expenses such as mortgages on the rise.
It is estimated that the number of property repossessions are set to rise by a staggering 50% to 45,000 in 2008, a worrying statistic indeed. So what does this mean? A lot of people get into such bad debt problems that they are faced with filing bankruptcy or Insolvency as a last resort to fix their woes.
Claiming Insolvency seems to be the choice many take with January seeing the most enquiries about resorting to extreme measures, where they are able to pay a fixed ammount over five years in order to have the total debt wiped. It is estimated that last year £1.3 Billion was written off via Individual Voluntary Arrangements. Last year people with IVAs owed £50,000 each but this number is expected to rise in 2008.
Whilst it has fast become one of the popular
debt management solutions advisors have urged consumers that IVAs are only suitable for a select number of cases and that you should seek advice prior to committing to filing for IVAs or even Bankruptcy.
In cases where you need to get a
debt consolidation loans to help with your debts you should be careful to only borrow what you are confident you can repay as when you consider interest and APR you will be paying back a substantial amount more than you originally borrowed. Lenders have been notoriously more stringent with the lending of money in light of last year’s credit crunch with some lenders ceasing to offer unsecured loans all together.
The main bit of advice all the experts are saying about
debt management is to be quick to get help, the main issue with debt is that it doesn’t wait for you and that time is of the essence; The sooner you realise you have a problem then the sooner you can act on it and get yourself debt free.
