The Chancellor’s upbeat report on March 19th showed unemployment at its lowest since 1975 and the economy on a long quarterly growth run. Despite this upbeat assessment, debt advisors, like Ramsey Lomax, see a very different view of the UK. Every day we deal with stories of people struggling with debt.
Debt advisors get thousands of calls every day.
Whilst most people have jobs, they are still falling into arrears as they struggle to pay essential bills as prices rise. Many rely on credit cards to get by and put food on the table for their families.
Many people in debt suffer from ‘financial fear.’ That feeling of helplessness that there is no way out. Good debt advisors are essential. We are proud to have helped many clients to find a way out of their struggles.
But, the fact is that household indebtedness remains stubbornly high.
Whilst the Bank of England proclaimed this to be ‘slightly puzzling’ debt advisors and charities understand the problem has shifted in recent years. “We are seeing far more people with what we consider priority debts,” said one charity.
“There’s a disconnect between the Bank of England figures, which look fine, and what we see.”
The UK is a country reliant on consumer spending. Red flags about levels of borrowing are hardly new. Certainly not to debt advisors.
But the risk is that a financial shock from Brexit could tip many people over the edge.
Growth is already slowing. Weakness is spilling over from the euro region and companies are withholding investment amid the lingering uncertainty over how Brexit will unfold.
Meanwhile, households, after years of wages failing to keep up with inflation, are looking vulnerable. Those vital consumers are operating on increasingly tight budgets just as the economy needs their pounds. Whereas before the financial crisis borrowers had over-extended, now the big problem is people just not having enough money to cover the essentials. There is a growing need for more debt advisors.
“We’re getting an increase in uncertainty at the same time as the increase in indebtedness. People are pulling their horns in. They’re worried about Brexit, they don’t know quite what it will bring. If we all spend 5 percent less, it’s a drop in consumer spending and that’s big.”
U.K. consumer debt levels have climbed above their pre-crisis high
Debt advisors, helping those with debt, are at the sharp end of the growing problem. At Ramsey Lomax, we talk to some of the estimated 8 million people struggling with debt in Britain on a daily basis.
Our clients all have their own unique stories to tell. We always do our very best to help and support them.
Recent reports have shown that financial problems are one of the main causes for the increase in mental health issues.
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.