Personal Finance - Have Consumers Had a Belly Full of Personal Debt?
For months, we were trigger-swipe happy, putting our groceries, clothes, holidays and service charges on our credit cards. We wanted mortgages, we took out loans, we watched Property Ladder and What Not To Wear. Whether you were born middle class, had middle class aspirations, you became middle class through your spending. Debt united people around the UK, we sympathised with each other on what we couldn't afford – but it didn't matter, we still bought it. Soon everybody had a bottle of Jacob's Creek in their kitchen and olives and humous in the fridge.
Yet, it would seem as if a debt conscience is setting in. This morning, The Guardian printed a story based on the fact that Nationwide had reported a 0.2% decrease in the average house price, whilst the Times reported on a statement from the Bank of England, showing that credit-card borrowing was at its slowest rate for more than four years, with mortgage lending also very static.
According to the latest Department of Trade and Industry Survey, 5% of individuals reported finding their household's debt repayments a "heavy burden" and 4% of individuals are currently behind in payments for at least one credit commitment or domestic bill over the past three months.
According to Credit Action, in December 2004, 1.2 million electricity and 1 million gas domestic customers were behind in repaying their debts to their supplier. Additionally 20% of people say that they often neglect checking their bank balance because "they are too scared to find out how much money they have", according to Lloyds TSB.
Credit Action also reported that the number of people searching for help to manage their debts had almost doubled in May in 2005, compared to figures in May 2004 and a survey from Relate revealed that 44% of couples find money to be a contentious issue in their relationship and a quarter of people in debt are receiving treatment for stress, depression and anxiety from their GP.
It doesn't have to be all doom and gloom however. If you're lucky enough to have no outstanding debt, you can keep you finances in shape by exploiting the services of sites such as moneynet, which provide financial product price comparison information and extensive consumer information guides. If you have any outstanding debts, you can seek advice from the Consumer Credit Counselling Service (CCCS) or Citizens' Advice and financial comparison sites like lowermybills and moneynet also provide detailed research on debt consolidation loans and debt management.
Resources:
http://www.moneynet.co.uk/credit-card-guide/index.shtml
http://www.creditaction.org.uk/debtstats.htm
About Rachel
Rachel writes for the personalfinanosaurus Cashzilla
Rachel has been writing personal finance related articles for six months and has learnt so much about mortgages and life insurance, that nobody invites her out to dinner anymore. :(
Related Articles:
Tips For Getting Out of Credit Card Debt
If you are like most people, having a lot of credit card debt becomes very stressful when you are trying to make the payments every month. Most people own way to many credit cards so the can only pay the minimums on each one.
Debt Reduction
One of the most common problems in almost every American household today is credit card debt. Paying with plastic is convenient, but if used unwisely; it can be a burden. Unless you have real money to burn, credit card bills can easily stack at the end of the month. Interest rates are a different thing, especially when you find yourself spending beyond your means.
A Debt Consolidation Loan: Smooth Out The Financial Rough Spots
Most people have times in their lives where their income just doesn't meet expenses and they need to find ways to get through those tough times. One of the most stressful times in someone's life is when they find themselves out of work for any reason or if available hours at work are reduced so they have far less take home pay. If you are one of these people, take heart. While you are looking for a new job, there are actions you can take to reduce your expenses and keep more money in your pocket to help you and your family survive. If you are like most people, you will have debt and if so the most helpful thing you can do for yourself is to combine your debts into one debt consolidation loan at a low interest.
Pay Off Your Debt In Just A Few Years
Are you tired of watching your debt grow month after month? Do you realize how much you are paying in interest over the years to the companies you have credit cards with? We?ve all done it and sometimes it feels like there?s just no way out of the credit trap. I?ll share how you can start paying off your debt rather quickly by taking small steps and sticking with the plan.
Facing Medical Bills You Hadn?t Planned On? A Debt Consolidation Loan Online Can Help
An unexpected car accident or heart attack is stressful enough in itself. When you compound that with the medical expenses as a result, the numbers can grow quite scary. Usually a hospital will be willing to work out some sort of plan with you so that you do not have to pay the entire expense immediately, yet this is not always enough. Sometimes the amount they?re asking you to pay in installments is more than you can afford. After all, with the medical problem, the every day expenses did not disappear. There is still the mortgage to pay, utilities, cell phone, food, and any other monthly expenses you may have. In order to make this expense not the one to cause you to file bankruptcy, a debt consolidation loan online can be just what you ne...
Credit Card Debt ? Elimination Or Consolidation?
You?re at the end of your rope and you simply can?t do it anymore. You?re drowning in debt and sick and tired of trying to gather enough money each month just to make the minimum payments due on your credit cards. You can be certain that you?re not alone. There are many people who are facing a financial crisis much like the one with which you?re dealing. It?s overwhelming and scary, especially if your accounts are delinquent and you?re receiving threatening and harassing calls and letters from debt collectors. Take comfort in knowing that you will overcome this financial burden because, fortunately, there are options available to you.
Consolidate Debt Safely
Even though debt consolidation can save your financial status, as well as your personal relationships you still need to be aware of the growing trend to consolidate debt. Financial planning is always key in any healthy bank account, but beware of what some of these firms offer. Many have advertised all over the Internet and TV, but some of these are now being sued by different attorney generals, the IRS, and even the FTC. The reason for these suits is the fact that they are not really non-profits.
Think Debt Consolidation With Credit Cards
Credit cards makes purchasing easy and so we end up using it frequently And this is one common reason why majority of people are in debts