Consumers Suffers From Awful Debt Troubles

According to a new study a significant number of Britons report that their debt troubles are causing them difficulties in other areas of their life.

In research conducted by R3 - the Association of Business Recovery Professionals - one out of six consumers are stated that they are unable to manage with repayments on secured loans and credit cards. Of those struggling the most with their day-to-day finances, 21 per cent of respondents were reported to have come across debt troubles as a result of becoming ill, with 33 per cent highlighting redundancy as the source of their monetary difficulties.

The study also pointed out that more than half of 18 to 24-year-olds are servicing student debt repayments, with this proportion declining to one in three of 25 to 34-year-olds still paying off money owed from their time in higher education. Meanwhile, the majority of respondents claim that rising accessibility of credit, overspending and a “buy now” desire to make major purchases like cars and foreign holidays were said to be the driving factors behind the “meteoric rise” in Britain’s debt management problems.

Commenting on the index, R3 president and insolvency lawyer Patricia Godfrey stated that “Our members see the unhappiness that high levels of debt can cause, as it is our insolvency practitioners who pick up the pieces when the debt turns out to be terrible.” In such scenario seeking debt management may prove to be helpful.

Ms Godfrey claimed that as the number of those filing for bankruptcy reached a record high last year more Britons could be set to struggle with their finances as the use of credit continues to increase and the Bank of England increases interest rates. As consumers continue to feel the impact of increasing house prices and a surge in the general cost of living, those who are themselves unable to meet their credit commitments are advised to seek professional advice as soon as possible.

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