Bank of England Personal Debt

The Governor of the Bank of England, Mark Carney, warned on 30 November 2016 that levels of personal debt is on the increase in households across the UK.

He stated that borrowing was increasing significantly on credit cards and other unsecured debts.

This was in part put down to the easier availability of cheap credit and comes at a time following a period of reduction and levelling out of personal debt in the aftermath of the financial crisis.

Easy Credit

It is likely that many people are seeing credit easier to come by and with low interest rates this is looking more attractive. However, this can of course lead to a great deal of un-affordability and defaulting on the new credit.

Any slight changes in circumstances such as rising interest rates or reduction on working hours can have a catastrophic affect on personal finances with little leeway to absorb such changes.

Additionally there is also great uncertainty over the housing market and due to Brexit.

It may be that you are in a situation where you are struggling to meet debt repayments or taking out credit to pay off some other form of credit. Alternatively, you may be struggling to meet essential bill and mortgage or rent payments due to these additional burdens.

Of course, in the lead up to Christmas, new credit can be highly enticing which would exacerbate the problem in the New Year.

An IVA can help alleviate your debt problems and relieve much of this pressure. Seek IVA advice from X Debt now where a professional IVA advisor can talk you through the process.

Increased Borrowing on Credit Cards and Unsecured Loans

Figures showed that credit card lending is now at record levels, up by £571m in the past month which backs up the above theory. Think about that for one minute. Up £571 million pounds in one month.

Overall unsecured debt, including overdraft is increasing at its fastest rate since before the financial crisis.

This issue will undoubtedly affect millions of people.

The Banks ‘Stability Report’ shows that the ratio of household debt to income is running at 133% which is high by historical standards although not as high as during the financial crisis.

Individuals with Debt Problems

To add to these statistics we can also include some data of our own with demographics of individuals seeking (or at least searching) for debt help.

The graphs below show the age groups of those searching for help with debt and visiting our IVA website www.x-debt.co.uk during the month of October 2016.

We can see that over 30% of all traffic to the website is from individuals aged between 25 to 34. This reduces only slightly to Age 45 where we then see a gradual decline to age 65+. However, those in the higher age band can have a larger amount of debt as they have had longer to build it up and are (or have been) in a financial position to sustain higher levels of debt.

During the same period we can also see that almost 70% of those searching for debt related assistance are male.

Is an IVA Suitable for You?

Searching for debt help or advice is the first step on the road to debt recovery, a step these individuals are taking. It may be simply for informational purposes and to see what options are available. However, it may also be to take the right advice and begin the process to reducing their monthly outgoings and levels of debt.

It is extremely important to take that first step which can sometimes be the hardest. We have found that speaking to someone who is qualified to advise you can instantly relieve the situation and give you much needed peace of mind. Please pick up the phone to speak to one of our advisors on 0161 787 3400 or 0800 043 2424 or Contact Us here to see if an IVA may be a suitable  debt solution for you.

X Debt staff have many years experience in IVA advice and dealing with your IVA throughout the arrangement. Our Insolvency Practitioner is always on hand should you need additional advice.