Studies have shown that the areas of Britain who are struggling the most with debt are in Wales, Scotland or the North-east of England. People living in these parts of the UK are much more likely to need debt management advice than those residing in London and the South-east.
Phil Flaxton, chief executive for Work Wise UK – a non-profit information initiative, points to unemployment levels as the main problem causing the debt issues. Areas in the South-east and London didn’t suffer quite as much with job levels – although undoubtedly they have still had a tough time of it during the economic recession.
People who never had a job, or have found themselves unemployed, may have to look to lenders to keep their heads above water – particularly if they have no savings to fall back on. This could lead easily lead to arrears of monthly payments and spiralling debt. In these cases, the options are varied; a debt consolidation loan could take some of the pressure off, by clearly keeping under control incomings and outgoings. Debt Relief Orders (DRO) or Individual Voluntary Arrangements (IVA) are also worth looking into if you are trying to manage debt. An IVA is an agreement between lender and applicant, to repay a certain amount that they can afford every month. If you don’t qualify for an IVA – perhaps because your debts are unsecured, you can take out a DRO. There is a wealth of information on the internet, so there’s no shortage of debt management advice for those prepared to look for it.
Mr Flaxton commented that; ‘I thought we would see a rise in the amount of people that was still continuing to live on credit.’ However, he now concedes that, in general, there has been an increase in the number of people maxing out their credit cards – whether they are able to manage their finances or not, instead of taking out loans against their credit.
Work Wise UK’s main aim – according to their website – is to ‘make the UK one of the most progressive economies in the world by encouraging the widespread adoption of smarter working practices.’ The company provides a central information service for the UK workforce and is attempting to unite the public and private sectors.