Coping With Rising Debt Levels

When it comes to debt management, professional debt management, IVA and debt consolidation companies have one thing in mind: reducing and eliminating debts. Helping customers find a way to manage their monthly payments and climb out from under their mountain of debt is their only focus.


It would seem, however, that many individuals in the UK are unaware of the significant help debt management companies can provide them. And so, day after day, they accumulate more debt until they can barely live, let alone pay back their creditors.


How bad has debt become? You might be surprised to find out exactly how much personal debt is affecting citizens of the UK these days.


2012 UK Debt Statistics


According to a July 2012 report from the financial website, Credit Action, UK individuals are experiencing the harsh reality of rising debt levels more than ever before.


· At the end of July this year, individuals owed almost as much as the country in debt, with personal debt standing at £1.410 trillion total for citizens.

· Citizens owed £1.253 trillion in secured home loans.

· £157 billion was owed in unsecured loans and debts.

· The average household debt in July was £5,972, excluding mortgages. With mortgages, the number rose to £53,613.

· The average amount of debt owed to creditors by each adult in the UK, including mortgages, was around £28,704, about 117% of an average adult’s income.

· £3,197 worth of consumer borrowing for each adult was calculated in July. This included unsecured loans, retail financing, motor financing, overdrafts, and credit cards.

· Each UK household spent an average of £2,280 over the last year in interest alone on their debts.


Solutions For Debt Problems Are Available


Is it any wonder debt management companies are working so hard to inform people of their debt management options? These rising debt levels are telling us one thing: debt management is essential. You don’t have to let your finances control your life. You don’t have to reach the end of every month and realize all of the money you worked so hard for was spent paying back your debt.


Debt management companies understand that debts can quickly go from manageable to out of control, and that is why they help you find a debt management solution that is can easily help you get that control back. Here are just a few you can take advantage of.


· Debt consolidation – If your debt is relatively small, but you are still struggling to pay multiple bills each month, a debt consolidation loan can help. With this loan, you can repay all of your debts and then make one smaller payment each month, usually with lower interest, on the loan.

· Debt management plan – A debt management plan can combine all of your monthly bills into one simple and smaller one, allowing you to pay on all your debts each month from one payment. Most times, your debt can even be reduced, as debt management companies are often able to convince your creditors to freeze interest and additional fees.

· IVA – With an IVA, or individual voluntary arrangement, your debt management company can help you establish a legal agreement with your creditors in which you make one monthly payment for a period of five years on a specific percentage of your debt. Once this term is over, you are forgiven of the rest of your debt.


The statistics for debt in the UK are staggering, but you don’t have to let them, or your finances control your life. The right debt management company can help you become free of debt and get back the control you need.



Martin Bradley is a representative of Harrington Brooks who specialise in Individual Voluntary Arrangement (IVA), Debt Management plans and bankruptcy services. Martin says” It’s hard to the light at the end of the tunnel when you’re struggling to pay your debts, but there’s no need to suffer alone. Harrington Brooks are currently helping over 35,000 individuals in the UK to get out of debt, making it easier for them to make more affordable repayments.” Visit their website here or search for Harrington Brooks.