Financial difficulties for millions of people in the UK show no sign of lessening, according to figures from a national charity.
Personal debt in the UK rose by over £40bn from July 2011 to July this year, to over £1.4tn. What this means is an average personal debt level (including mortgages) for every adult in the country of over £28,000 – nearly a fifth higher than the average adult’s national wage.
Credit Action, a charity working across the financial industry to provide education on money matters, also reported that the amount of people out of work for over a year has risen, to over 882,000 – and that nearly 1,639 people a day are being made redundant.
Although the overall number of people unemployed has fallen, the economy has shrank by half a percent for the third quarter running, confirming the current recession’s impact on millions of workers.
Providing Assistance With Personal Debt
Even with the assistance of companies like Harrington Brooks, who provide debt management and advice to over 36,000 people across the UK, personal debt issues are rising still.
The Citizens Advice Bureau has experienced a rise in debt queries – there are 8465 new issues on average per day, accounting for a third of all inquiries dealt with by CABs all over the country.
Debt worries are second only to benefit problems that the CAB deal with, an area that itself may rise following the Government’s recent welfare reforms.
Benefits are being claimed by 5.9m people of working age in the UK – a figure that has also risen since last year. Less and less people are able to rely on stable income from a job, leading to increased anxiety and stress when making ends meet.
Security At Home
Harrington Brook’s partner USwitch, who provide no-obligation quotes and price-comparison checks for energy companies and suppliers, surveyed consumers on their feelings of financial security – and found that the average household falls nearly £1500 short each month.
61% of people felt financially insecure, and felt that if all payments and needs were met they would on average require an estimated £3939 – however, average household income of respondents was £2504, £1435 away from a comfortable worry-free financial situation.
35% of those surveyed said financial security meant not having to rely upon credit to make essential monthly payments – but nearly two-thirds of this group using credit for day-to-day living.
Dealing With Debt
The number of people R3 (the Association of Business Recovery Professionals) estimate to be in debt management plans of various kinds may be as high as 700,000 in the UK.
Over half a million more are believed to have contacted creditors about reduced payments, due to financial stresses – but as much as 916,000 are said to be struggling yet have not sought any help or advice.
Harrington Brooks provides impartial assistance in dealing with debts and creditors – whatever circumstances or amounts you may be experiencing difficulties with, calling our professional and knowledgeable staff can be the first step in dealing with debt problems large and small.