The Burden of Debt

Over recent years personal debt in the UK has exploded. Since 1997 the total debt including mortgages was in the region of £940 million. Approximately 18% of that figure is unsecured credit, accounting for about £8000 per household.

This is a staggering amount of money. With interest rates being raised several times last year, the strain of maintaining our debt is taking its toll. Sources reveal that the UK's debt "has increased every single month without fail since April 1993".

As it has been relatively cheap to borrow money over that last few years it has been very easy to get access to money. Interest rates are widely predicted to rise further adding even more to the current £5 billion we are paying every month in interest.

According to the FSA (Financial Services Authority) one pound in every 10 we spend is borrowed money. It's very easy to shop around for good rates when borrowing money. Most of us still buy our financial products on the high street and the big Financial Institutions base the price of their products on what they think is the maximum borrowers are prepared to pay.

With the internet people are able to shop around for much better rates and this is driving the average price of borrowing money down. This does pose a catch 22 situation as the cheaper the cost of borrowing becomes the more people will feel they can borrow more. This does breed a nation of people that are living beyond their means. Debt can be very dangerous as you are effectively borrowing from your future to pay for today.

The wage rate is not growing in line with rising debts so somewhere along the line something has got to give. This may be in the form of the slightest interest rate rise which may be the straw on the proverbial camels back. One could associate it with a brick that is attached to an elastic band. You can gently pull and pull and nothing will happen, sooner or later the brick will finally budge and most of use will be walking around with a black eye.

If you do find yourself in debt then don't despair it's not the end of the world. As long as you face up to the fact that your financial position needs a makeover then you are on the right path. The first thing to is gather all you credit statements and get an exact figure of what you owe in total and what those monthly payments add up to. You need to be clear in your mind what you earn and what you owe. This sounds simple but you can't service your credit if your repayments are more than what you earn. If you find yourself in this position you need to consolidate all your loans into the lowest rate you can find. This will bring down you monthly payments and hopefully be more manageable.

If you need help on doing this then contact the National Debtline on (Freephone) 0808 808 4000 or the Consumer Credit Counselling Service on (Freephone) 0800 138 1111. These numbers are for UK residents only.

Grant Marwick is a freelance writer and owner of http://www.only-credit-cards.co.uk where you will find advice and more articles on Low interest Credit Cards and Bad Credit Credit Cards

---

Getting Your Best Deal on a Consolidation Loan

If you find yourself having to make too many payments... Read More

Debt Consolidation Confusion

Learning about debt consolidation can be quite a confusing venture... Read More

How to Choose a Debt Consolidation Loan?

If you have decided that a debt consolidation loan is... Read More

Consolidate Your Credit Card Debt

With the popularity of plastic money in the present age,... Read More

Debt Consolidation Made Simple

If you have considered debt consolidation then you are probably... Read More

Money Problems?

You're not alone. Many people face a financial crisis some... Read More

Planning To Become Debt Free With A Consolidation Loan

If you have multiple debts, and are struggling to meet... Read More

How Do I Know a Good Credit Card Debt Reduction Strategy When I See It?

Credit card debt reduction is an important part of the... Read More

Debt Consolidation: Its all in the Planning

If you're like thousands of other people who find themselves... Read More

Getting a Better Consolidation Loan Secured

If you're looking for the best way to reduce the... Read More

Perks and Pitfalls of Debt Consolidation

Whether you want to pursue debt consolidation in order to... Read More

Cheap Debt Consolidation Loans - Inexpensive Way of Winning Financial Freedom

The rising cost of living can force you sometimes to... Read More

Getting the Most Out of Consolidation Loans UK

Before letting too much debt or too many payments get... Read More

Alternatives to Filing Bankruptcy

Deciding to file for bankruptcy is a decision that should... Read More

Open the Cash Vault Inside Your Home

Believe it or not, many people do not understand equity... Read More

Private Student Loans ? Dispelling The Myths

Private Student Loans ? dispelling the mythsIf savings, grants, scholarships,... Read More

Debt Consolidation Company and Companies

Debt consolidation companies have dotted the debt solution landscape as... Read More

Debt Consolidation ? Consolidate Your Student Loans Now!

The Federal student loan program has benefited thousands of college... Read More

No-Cost Student Loan Consolidation

No-Cost Student Loan ConsolidationA no-cost student loan consolidation ? doesn't... Read More

Bad Credit Debt Consolidation Loans - Getting a Debt Consolidation Loan, Even With Poor Credit

An online debt consolidation loan allows even people with a... Read More

Choosing the Right Credit Counseling Agency for You ? Some Tips

Credit counseling companies come in all shapes and sizes. Whether... Read More

Thinking Beyond Debt Consolidation Loans

Planning to devise a permanent solution to the problems of... Read More

Debt and New Spirituality

Overcoming the stigma of being in dept, grow in self-confidence... Read More

Debt Consolidation Loan and Consolidation Loans

Debt consolidation loan services act as a third party intermediary... Read More

Debt Consolidation -- Choose Your Credit Counselor Carefully

Recently passed by Congress, the Bankruptcy Abuse Prevention and Consumer... Read More

What Your Mama Never Told You About Debt Consolidation Services

When someone is extremely deep in debt, and he or... Read More

Debt Consolidation with Free Government Grants? One Scam to Avoid

Have you ever seen a commercial or an ad promising... Read More

Credit Counseling ? Six Tips to Avoid Counseling Scams

Credit counseling is a useful service for anyone with problem... Read More

How To Get Rid Of Debt Problems Step 1 -- How To Deal With Your Creditors

However far you are along the road of financial/debt problems,... Read More

Re-Mortgages ? There?s Help For Bad Credit Ratings On The Way

As any report on the subject will reveal, million of... Read More

Debt Consolidation ? Discipline is Required if Consolidating with Home Equity

Debt consolidation is a popular topic these days. The average... Read More

Debt Consolidation: How it Works

As long as consumerism flourishes most of us will be... Read More

Debt Consolidation Loans: Thousands Now Out Of Debt, Who Never Thought They Would Be!

A Debt consolidation loan: Is a personal loan you use... Read More