The Effects of Consumer Debt
?>
Download eBooks and Software
 Fully Verified Winning System Since 1999 & Vip Club Picks!
Winning Sports Picks & Predictions By Zcodesystem.com - Nhl, Nfl, Mlb And Nba Predictions And Picks From The Best Experts In The Industry + Fully Automated System Proven Since 1999 Awesome Conversion 5.26% And Recurring 60% Commission!
The Lotto Black Book
This Radical Approach To An Online Sales Letter Converts In The 3-5%... We've Never Seen Something Like This Since The Early Days Of 2004-2005 And I'm Sure You Haven't Either... We Convert More Than Our Competition And We Pay Out More... Try It!
Paleo Recipe Book - Brand New Paleo Cookbook
Brand New Paleo Diet Cookbook With Over 370 Recipes. Pays 70% Commission On This High-quality, Easy To Sell Product. Get Banners And Promotional Material At Http://paleorecipebook.com/affiliates.html
Articles > Business and FinanceThe Effects of Consumer Debt
by: Nicola Bullimore
Consumer Borrowing
Consumer borrowing in the UK has now crashed through the £1 trillion barrier. 80% of this is due to credit card borrowing, loans and mortgages. How are people managing to handle their debt and what effect is debt having on families today?
The National Consumer Council reports that 6 million families in the UK are already struggling to make repayments towards their debt, and Citizens Advice reports that over the last 6 years, they have seen a 44% increase in the number of people seeking debt advice. This may be just the tip of the iceberg. There must be many families in the UK who have debt problems, but are not aware of the free help and advice available.
Tackling Debt
According to a DTI survey carried out in 2002, a household is likely to be over-indebted if:
- 25% of your annual income is spent on repaying Creditors
- 50% of your annual income is spent on repaying credit and mortgages
- You have 4 or more companies that you owe money to.
People find it difficult to make repayments for a number of reasons. Generally, the underlying cause is some kind of change in personal circumstances such as job loss, divorce, illness or a new baby. In these instances some people may resort to more borrowing in order to pay creditors or household bills. This is not always the best option.
Effects of Over-Indebtedness
The personal effect of struggling to repay debt can be far reaching. Sometimes a lack of financial awareness can lead to stress, depression, anxiety, mental health problems, relationship breakdown and even suicide.
Raising Financial Awareness
The Government recognise the need to raise financial awareness amongst the general public. The financial cost of debt is not only on an individual level, but there is also a cost to society in general.
People who experience stress due to their situation, will probably seek advice from their GP and may take time off work, therefore, this has an effect on already hard-pressed NHS and productivity due to absenteeism.
People who have had homes repossessed need to be re-housed, generally by the local Council. Those who seek legal aid due to debt issues also incur a cost to the taxpayer.
The Solution before the Problem
Will raising financial awareness alone tackle the issues of debt problems? It helps for people who are already struggling with debt, but are there other areas the Government should be looking at?
If you pay your creditors on time, regardless of what it takes to pay them, you are classed as a good payer and therefore, not a risk when it comes to additional borrowing. In fact, your finances could be in turmoil and you could be taking money from one card to pay another but you may still obtain even more credit.
The freedom creditors have to advertise loans, credit cards and mortgages could be challenged as well as how decisions are made regarding lending.
If people, who are currently in financial difficulty, find they cannot borrow more money, they should be made aware of the free financial advice that is available. Free Debt Management Companies such as Payplan, www.payplan.com, can negotiate repayments with creditors so that monthly payments are reduced and become more manageable.
About The Author
Nicola Bullimore has been working with people to resolve debt problems for a number of years. For more information regarding debt issues, please visit www.debtquestions.co.uk.
|
?>
News on Business and Finance
Geraldo Rivera And Monica Crowley Will Be Featured On The Small Business Authority Hour
NEW YORK, May 24, 2012 /PRNewswire/ -- Newtek Business Services, NASDAQ: NEWT, The Small Business Authority , announced today its next live radio broadcast with two exciting talk show hosts from 77WABC, ... The Business Finance Store Discusses New Findings on the Business Benefits of R&D
The Business Finance Store discusses a few new findings and examples of how companies get an incredible competitive advantage by developing and testing new products and services.Santa Ana, CA (PRWEB) May 24, 2012 The Harvard Business Review reports that a strong research quotient (RQ) could show that research is crucial to business success and that there’s a solid correlation between RQ and ... The Business Finance Store Discusses the Effects of Business Credit on Personal Credit
The Business Finance Store discusses some of the potential repercussions of business credit on a business owner’s personal credit.Santa Ana, CA (PRWEB) May 22, 2012 A recent study by Pepperdine University and Dun & Bradstreet Credibility Corp. showed that most small businesses tend to get funding through traditional channels, the Washington Post reported. Seventy-one percent of small business ... The Business Finance Store Discusses Small Business Debt Collection
The Business Finance Store discusses some strategies for small business debt collection.Santa Ana, CA (PRWEB) May 23, 2012 Wonga, a high profile UK-based short-term lender, is being criticized by the British Office of Fair Trading for its debt collection practices, the BBC reported. One such debt collection tactic included suggestion that the debtor committed fraud and would be reported to the ... Canadian Business Eyeing Asia, Mexico, Brazil Like Never Before
Yet mood for expansion rests on stable economic growth at homeMISSISSAUGA, ON, May 23, 2012 /CNW/ - Federal Finance Minister Jim Flaherty's persistent coaxing of Canadian business to diversify international ...
|
