“Struggling with debt can have a real impact on lives and peoples’ mental health.”
Most people who get into financial difficulties do so because they are struggling to make ends meet. Not because of reckless overspending, say experts. People can feel isolated but the truth is you are not alone.
Study reveals a rise in personal debt.
A recent study shows the number of households defaulting on personal debt is set to rise to 3.8 million over the next 4 years. The figures from the Office of Budget Responsibility (OBR) showed that around 3.3 million households defaulted on their debt in 2017.
The 500,000 increase is expected despite a slight dip in the total in 2019 and 2020. .“Due to the lagged effect of the post-Brexit referendum bank base-rate cut and subdued unemployment. It will then resume an upwards trajectory to reach 3.8 million by the end of 2022.”
“From 2020 onwards, mortgage possessions are expected to rise more sharply, as the recent base-rate increase and future rises push up borrowers’ costs.”
The forecast also looks at the impact on default levels if the Bank of England increases the bank base rate at a faster rate than currently projected. If it is 0.5 percent higher than the OBR forecast, an additional 250,000 households will default by 2021.
Thousands struggle with debt each day.
Thousands of people each day are struggling with debt. Figures for England and Wales show the highest levels of people becoming insolvent for 5 years in the first three months of 2018.
The Insolvency Service says the increase was mainly driven by an increase in IVAs (Individual voluntary arrangements) which have reached a record high. Bankruptcies and DROs (debt relief orders) were also up.
“Given the pressures people’s personal budgets have been under, this is perhaps not a surprising result,” says one expert.
“Getting good advice is vital.”
Everybody’s debt struggle will be different and more often unique to them. This is why it is really important to get good independent advice from the right experts.
The right expert will look at each case, where people are struggling with debt, individually. And explain ALL of the options that will be available in those circumstances. They should explain everything clearly and help you to understand the best way to deal with your debts, helping you to get your life back on track.
A truly experienced debt advisor will be understanding and could make all the difference to the outcome. A good debt advisor will not charge you to talk to them and you will always be in charge of your own decisions and should not feel any pressure.
There is no real ‘one size fits all’ solution to resolving your debt problems. So choosing the right one is vital and getting free, independent advice from the right experts is crucial.
Experts say there is a “debt epidemic” and that it is hitting those least able to recover, with many households in a negative budget, meaning their everyday costs and bills exceed the amount they earn. A recent study showed that millions of households earn, on average £900 a year less than they need just to cover their essential costs.
Although wage rises are starting to outpace inflation again, this will have come too late for some who have gone a long time without a real pay rise.
Finding a good debt advisor is often a relief. At Ramsey Lomax, we have years of experience in helping people. One thing to remember is that your chat with our advisors is completely confidential, free and without obligation. For many of our clients just getting it off their chests and having a sympathetic ear to talk to can make all the difference. At Ramsey Lomax, we understand ‘financial fear’. We have helped 1000’s of people to find a lasting solution to their debt.
Ramsey Lomax is fully authorised and regulated by the Financial Conduct Authority.(FCA) We also have a 5 star Trustpilot rating.
Taking that first step is not always easy but is a crucial step towards helping you to find financial freedom.