Debt help

RISING UK DEBT DAMAGING MENTAL HEALTH AND WELLBEING

According to a new report by the Centre for Social Justice, personal debt in Britain has reached £1.4tn – almost as much as Britain’s economic output.

The report which is entitled ‘Maxed Out’ has shown that the average household debt has risen to £54,000, nearly double what it was 10 years ago.

The report found that poorer people are “bearing the brunt of a storm”. Almost half of households in the lowest income group spent more than 25% of their income on debt repayments in 2011.

The report also found that:

  • Consumer debt has trebled since 1993 – now standing at £158bn excluding mortgage lending
  • More than 8m households have no savings, including half of low income households
  • Outstanding debt on credit cards has nearly trebled since 1998 to £55.6bn.
  • In 2012 there were 300,000 arrears on mortgages and 34,000 repossessions. This is a reduction of 30% from the peak of the recession but a 60% increase since 2006.

The report suggests that overwhelming debt is damaging people’s mental health and wellbeing.

Bev Budsworth MD of The Debt Advisor commented “this report is helpful to highlight the plight of those less well off. However, total debt first exceeded  £1.4tn in 2007 when it hit £1.43tn. Total UK debt peaked at £1.45 tn in 2010 and has declined to £1.42tn. More importantly Consumer debt has materially decreased in recent years from £232Bn in 2008 to the current level of £159Bn.”

Bev adds “additionally personal insolvency figures have also materially declined since they peaked at 133,664 in 2009 to 109,477 in 2012. Predictions are that the numbers of insolvencies for 2013 will decline further to just over 100,000. This does not however, include the numbers of people entering into debt management plans. It is estimated that there are 8 to 10 times more people opting for informal payment arrangements than for formal insolvency. With the introduction of the Protocol Compliant Debt Management Plan “P-DMP” on 1 October 2013, in my view non-lending solutions are now “fit for purpose”.

If you are struggling with debt, there are solutions available which can make your debt payments more affordable and an IVA could help you write off up to 2/3rd’s of your debt as long as you stick to the plan. The Debt Advisor were one of the 1st providers to be authorised to offer the new Protocol Compliant Debt Management Plans (P-DMP) .

The Debt Advisor is a member of the two trade bodies, DEMSA and DRF  who regulate the Debt Solutions Industry. We adhere to their codes and standards.

If you are struggling financially and want to discuss what options are available for you, call The Debt Advisor today on 0800 0851 825 to speak with one of our advisors. If you’re calling from a mobile, you can reach us on 0161 868 2500.

If you’d like us to call you, simply fill out the contact form at the top of the page.

RISING UK DEBT DAMAGING MENTAL HEALTH AND WELLBEING

Do you need help?

Specialist advisors are available who can advise you on the most appropiate solution to bring you relief from debt

More Posts From The Debt Advisor

CREDITOR ACTION – WHERE ARE WE UP TO?
Beverley Budsworth – The Debt Advisor FCA regulated Debt Solution Provider Judgments increasing against consumers Judgments in first quarter of...
Debt Relief Order changes – more people will qualify
The criteria to qualify for a Debt Relief Order “DRO” changes on 29 June 2021.  This will mean that around...
Mental Health – How to help yourself recover “Post Pandemic”
Mental Health - How to help yourself recover “Post Pandemic” PPSD* (post-pandemic stress disorder) Not (yet) an official term but...
Breathing Space debt respite scheme
What is Breathing Space? From May 4th 2021 new legislation will be brought into place to allow approved debt advisers...
How to improve my Credit Score?
Within the UK there are 3 main credit reference agencies, TransUnion, Equifax and Experian. All 3 work with banks, building...

We are proud of our 5* TrustPilot customer reviews

We are proud of our 5* TrustPilot customer reviews

The Debt Advisor Accreditations

There is an alternative free-to-consumer debt services from the Money Helper.

The Debt Advisor Accreditations

There are alternative free-to-consumer debt services from the Money Helper.

We’re ready to help with any debt problems

Social media

The Debt Advisor has a long and rich history of helping people and companies get past their debt problems. We welcome people to get acquainted with our company, history, team and to listen to the stories from the people we have helped.

Alternative free-to-consumer debt services are available from the Money Helper website.

Customer Support

18-22 Lloyd Street, Manchester, M2 5WA

Monday to Thursday: 9:00 am – 7:30 pm
Friday: 9:00 am – 3:30 pm

Company Registration: 06248441 | The Debt Advisor Limited is Authorised and regulated by the Financial Conduct Authority Reg No: 659920.

All debt solutions should be very carefully considered. Please note, if you are struggling with debt issues and need advice on your options, we’ll take a look at your financial situation and explain the available options. If it is appropriate to refer you to one of our trusted providers for a solution, we may get a fee for introducing you, or for the preparatory work we complete. Fees are payable if ongoing services are provided.

Copyright © 2022  The Debt Advisor | Privacy Policy | Cookie Policy | Complaints | Careers