Thursday 24th of September 2009
Debt management plans could be called upon by the millions of Britons who cannot keep up with essential monthly bills.
New research by Bright Grey reveals that essential bills account for 68 per cent of household income, leaving a quarter of people struggling to stay on top of them.
Almost 40 per cent of individuals claim that if they had to find £50 extra a month - for extra unsecured debt commitments, for example - they would be in financial trouble.
Indeed, with mortgage and rent payments, council tax, food shopping and transport costs to keep up, many households may be left with little cash to meet their unsecured debt repayments, which may be left on the back burner.
A debt management plan will allow creditors and borrowers to agree a more manageable monthly repayment on the basis that lenders will get their cash back. With unsecured debt at reduced levels, households may find it easier to meet their essential bills.
"The frightening truth is that many Brits are already struggling to afford their monthly bills - and all it would take is a small increase in bills or drop in income for people to find themselves in trouble," asserts Roger Edwards, proposition director at Bright Grey.
By Kimberley Parsons
