A leading debt charity
has said that it has received a record number of calls from consumers in the
first half of 2019.
The fear is that as a
growing number of consumers are over-indebted and ill-equipped to cope with an
economic shock, such as a no deal Brexit.
Over 331,000 people contacted the charity for help with problem debts. Those they advised were saddled with more unsecured debts.
Consumers living on a Knife-edge.
findings showed an increasing number of British households were struggling to
cope financially and “living on a knife edge”, with the charity seeing red
flags “across the board”.
the 190,484 people who received full debt advice during the period, the average
level of unsecured debt was 13,799 pounds, up 2% on the prior year and 6% up on
a third of new clients’ outgoings were more than their incomes, the charity
added, with problem debt most commonly caused by unexpected life events such as
a reduction in income, injury or illness, or redundancy.
“These statistics provide a sobering assessment of the scale of problem debt in this country”
“Clearly more and more households are struggling to hang on and are ill-equipped to deal with any economic shocks the future may hold”.
Brexit causing uncertain outlook .
This news comes against an uncertain outlook for Britain’s economy, with the country bracing for potential economic fallout in the event of a chaotic Brexit.
Analysts and regulators predict a disorderly Brexit would likely lead to a spike in bad loans.
economy shrank in the second quarter of 2019. Concerns of a recession were
eased somewhat by stronger than expected output in July.
Jackson, banking analyst at Goodbody, said: “We would expect an increase in
impairments if a no-deal Brexit led to a slowdown in growth and an increase in
“An increase in complaints could be a prelude to an increase in impairments more widely”, he added.
If you are struggling with debt problems, Ramsey Lomax can help. contact Ramsey Lomax.
“Over 12 years of dedicated advice.”
“People struggling with debt should seek help as early as possible.”
This is good advice from a leading debt charity. Taking the first step is always difficult but it is vital. There is help out there and solutions that can help, but you need to take the first step towards getting good debt advice. We have listened to the stories of 1000s of people and are constantly striving to help them. It is our mission to explore all their options and find a solution to help them become debt free. And what’s more, we have helped 1000s to achieve their goals since 2007, over 12 years of dedicated advice.