Figures show Brits ‘more inclined’ to risk debt than save
The research found that around 80% of households had taken on an average of £7,200 worth of debt using credit cards, loans and other unsecured forms of credit, while 40% of men and just 32% of women were saving by contributing to a private pension.
15% of those who had a store or credit card admitted they couldn’t afford to meet the minimum monthly repayments to their debts, while over half of active users felt that their debt repayments were ‘a burden’.
If you are struggling with unmanageable debts and you have found yourself in a situation similar to this – what could you do?
Seek professional debt advice
If you are struggling with unmanageable debt, you may find that dealing with it on your own is quite stressful – so you could seek professional debt advice.
A professional debt adviser will be able to assess your situation and let you know what they believe is the most suitable way to tackle your debts.
You may just need a little debt advice, but because your debts are unmanageable, you may find that you are advised to…
Enter a specific debt solution
Because you are dealing with an unmanageable level of debt, you may not be able to address your problems with a little bit of advice. A professional debt adviser may point you in the direction of a debt solution – an IVA (Individual Voluntary Arrangement), for example. More info on IVAs: http://www.thinkmoney.com/debt/IVA/
If you enter an IVA, you will be required to repay an agreed amount each month, that will be based on what you can afford after you have covered all your essential costs.
IVAs usually last for 5 years, and upon successful completion, any remaining unsecured debt you have will be written off. Note that this would have an impact on your credit rating.