Monday 2nd of November 2009
The average UK household now owes £58,340, according to November’s Credit Action report - a debt that may be easier to manage with the help of a debt management plan.
And this figure is set to rise - if the 2009 Budget figures are to be believed - to more than £115,000 by 2014.
Such a dramatic increase could cause financial meltdown for swathes of Britons already in debt and leave many wishing they had tackled their debt concerns sooner.
Indeed, the report also states that the Citizens Advice Bureau is already recording more than 9,300 new cases of debt every day - a number that is likely to rise if Britain’s borrowing problems escalate as predicted.
One action that could prevent last resorts, such as bankruptcy, becoming a serious consideration for debtors is a debt management plan.
A debt management plan is compiled by a financial expert who could seek to reduce interest rates on unsecured credit.
This could greatly help anyone who fears they may be one of those affected by the predicted rise in debt - as rising interest rates on unsecured loans could be a common cause of debt getting out of control.
By Rachel Powell
