Debt Relief Information


The Effects of Consumer Debt


Consumer Borrowing

Consumer borrowing in the UK has now crashed through the £1 trillion barrier. 80% of this is due to credit card borrowing, loans and mortgages. How are people managing to handle their debt and what effect is debt having on families today?

The National Consumer Council reports that 6 million families in the UK are already struggling to make repayments towards their debt, and Citizens Advice reports that over the last 6 years, they have seen a 44% increase in the number of people seeking debt advice. This may be just the tip of the iceberg. There must be many families in the UK who have debt problems, but are not aware of the free help and advice available.

Tackling Debt

According to a DTI survey carried out in 2002, a household is likely to be over-indebted if:

25% of your annual income is spent on repaying Creditors

50% of your annual income is spent on repaying credit and mortgages

You have 4 or more companies that you owe money to.

People find it difficult to make repayments for a number of reasons. Generally, the underlying cause is some kind of change in personal circumstances such as job loss, divorce, illness or a new baby. In these instances some people may resort to more borrowing in order to pay creditors or household bills. This is not always the best option.

Effects of Over-Indebtedness

The personal effect of struggling to repay debt can be far reaching. Sometimes a lack of financial awareness can lead to stress, depression, anxiety, mental health problems, relationship breakdown and even suicide.

Raising Financial Awareness

The Government recognise the need to raise financial awareness amongst the general public. The financial cost of debt is not only on an individual level, but there is also a cost to society in general.

People who experience stress due to their situation, will probably seek advice from their GP and may take time off work, therefore, this has an effect on already hard-pressed NHS and productivity due to absenteeism.

People who have had homes repossessed need to be re-housed, generally by the local Council. Those who seek legal aid due to debt issues also incur a cost to the taxpayer.

The Solution before the Problem

Will raising financial awareness alone tackle the issues of debt problems? It helps for people who are already struggling with debt, but are there other areas the Government should be looking at?

If you pay your creditors on time, regardless of what it takes to pay them, you are classed as a good payer and therefore, not a risk when it comes to additional borrowing. In fact, your finances could be in turmoil and you could be taking money from one card to pay another but you may still obtain even more credit.

The freedom creditors have to advertise loans, credit cards and mortgages could be challenged as well as how decisions are made regarding lending.

If people, who are currently in financial difficulty, find they cannot borrow more money, they should be made aware of the free financial advice that is available. Free Debt Management Companies such as Payplan can negotiate repayments with creditors so that monthly payments are reduced and become more manageable.

Nicola Bullimore has been working with people who have debt problems for a number of years. For more information regarding debt issues, please visit our Debt Questions website.


MORE RESOURCES:
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news


Reuters

Euro zone to decide terms of Greek bailout exit, debt relief in June
Reuters
Euro zone lenders, Greece's biggest creditors, are also set to decide in June what form of debt relief to grant Greece. The ministers asked the euro zone bailout fund ESM, the European Commission and the European Central Bank on Thursday to prepare a ...
Debt relief talks mar Greek bailout exitEUobserver
Creditors Fail to Reach Deal on Greek Debt ReliefGreek Reporter
Greek Debt Talks Said to Stumble on Bailout Loans Extension ...Bloomberg
Finance Appraise
all 19 news articles »


KUTV 2News

Medical debt relief letters are arriving in Utahns mailboxes
KUTV 2News
(KUTV) Imagine opening up your mailbox to learn that your debt has been wiped out! It's a reality for hundreds of Utahns all thanks to an ongoing Get Gephardt campaign aimed at paying off medical bills for pennies on the dollar. Last week we showed you ...



Wall Street Journal

After Troubled AIG, a Maiden Lane Tower Shifts to Consumer Debt Relief
Wall Street Journal
National Debt Relief, which got its start in 2009, helps consumers restructure personal debt, collecting fees for its service. The company signed a lease to take roughly 95,000 square feet of office space at 180 Maiden Lane, which has undergone about ...



U.S. News & World Report

France can't yet gauge impact of debt relief for railway operator: Finance Ministry
Reuters
PARIS (Reuters) - France's Finance Ministry said on Friday it was not yet possible to measure the impact on public finances of the debt relief the government offered to national railway operator SNCF. Prime Minister Edouard Philippe offered to absorb ...
French PM Offers Debt Relief for Railway ShakeupU.S. News & World Report
French government unveils SNCF debt relief plansInternational Railway Journal
French state offers debt relief in return for railway shakeupThe MediTelegraph
RT
all 255 news articles »


JD Supra (press release)

CFPB obtains default judgment in lawsuit against debt relief companies
JD Supra (press release)
The CFPB has obtained a default judgment in the lawsuit it filed in October 2017 in Maryland federal district court against two commonly-owned debt relief companies, their affiliated payment processor, and three individual principals for alleged ...



CFPB wins $21 mln default judgment from Maryland debt relief firm
Reuters
A federal judge in Baltimore has ordered a Maryland debt relief firm that claimed to be linked to the U.S. government to pay a $21 million default judgment after the company failed to respond to an enforcement action against it. In a decision on ...



The Tribune

Admn provides debt relief to 3700 farmers in Barnala
The Tribune
“During the first phase, 10,129 eligible farmers of Barnala district have already been given a debt relief of Rs 38 crore. If the name of any eligible farmer is left out from this list, he could bring it to the notice of their respective SDM and submit ...



Owen Sound Sun Times

Other candidates' take on tuition/debt relief
Owen Sound Sun Times
Youth Ask Town Hall all-candidates meeting on Saturday at First United Church in Owen Sound. From the left, Enos Martin, the Alliance Party of Ontario; Francesca Dobbyn, the Ontario Liberals; Don Marshall of the Greens; moderator Jon Farmer; Karen ...



Commercial Observer

National Debt Relief Inks 95K-SF Deal for Relocation Within FiDi
Commercial Observer
A representative for National Debt Relief did not return CO's request for comment. Colliers International handled the deal for the firm, but it was not clear which brokers completed the transaction. The owners of the 1983 tower at 180 Maiden Lane ...



The Tribune

Rs 17.44-cr debt relief for farmers
The Tribune
The district administration will organise a district-level function on May 25 to distribute debt-relief certificates amounting to Rs 17.44 crore among 3,722 farmers of Barnala district, under the debt relief scheme of the Punjab Government. While ...


Google News

home | site map
© 2007