Getting yourself out of debt

It’s a sad fact but recent analysis by UK banks has shown that approximately 54% of UK households are struggling with outstanding debts.

Debt can hit any of us at any time for many reasons. These can include living beyond our means, indulgent shopping splurges, losing a job, not enough work, benefit delays and simply not having enough money to make ends meet. In the past few years, household debts in the UK have soared. This is partially due to the recent cuts and delays in benefit payments as well as the stagnant low wages and the continually rising cost of living and essential needs. The poorest households often get into debt to finance their basic day to day living needs such as food, heating, rent and school costs for children.

Households and families finding themselves in debt can often find themselves spending more than 30% of their gross income on debt repayments and may find large debts never ending with ridiculous amounts of interest and charges added on. Many times people will incur more and more debt whist trying to pay off initial debts. Many households live in fear of debt collectors and bailiffs calling to talk their goods and are often bombarded with threatening letters from various debt companies.

Credit card debt is high on the list for many households. Credit cards can seem very tempting to apply for with a promise of instant credit and minimal credit checks. The monthly payments will begin very low, but the more you spend – the more they seem to increase your spending limits and then the monthly payments increase extremely quickly. Many people find themselves in the trap of taking out additional credit cards to pay back the original credit card debt and find themselves in monthly loops of paying one off with another. Thus incurring additional high interest charges. Credit card debts can take years to pay off if you are only paying the minimum monthly payment.

Any sort of debt including credit card debts can seriously affect your credit file and eligibility to obtain future credit. At worst it could also result in a county court judgement. However there is help for those struggling. Individual voluntary arrangements (IVA), Bankruptcy and Debt relief Orders (DRO) are all options to consider if struggling with debt. Creditfix can provide advice for working through credit card debt for all situations. Debt won’t just go away but there is help for those who need it.

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