Personal Finance - Have Consumers Had a Belly Full of Personal Debt?

For months, we were trigger-swipe happy, putting our groceries, clothes, holidays and service charges on our credit cards. We wanted mortgages, we took out loans, we watched Property Ladder and What Not To Wear. Whether you were born middle class, had middle class aspirations, you became middle class through your spending. Debt united people around the UK, we sympathised with each other on what we couldn't afford ? but it didn't matter, we still bought it. Soon everybody had a bottle of Jacob's Creek in their kitchen and olives and humous in the fridge.

Yet, it would seem as if a debt conscience is setting in. This morning, The Guardian printed a story based on the fact that Nationwide had reported a 0.2% decrease in the average house price, whilst the Times reported on a statement from the Bank of England, showing that credit-card borrowing was at its slowest rate for more than four years, with mortgage lending also very static.

According to the latest Department of Trade and Industry Survey, 5% of individuals reported finding their household's debt repayments a "heavy burden" and 4% of individuals are currently behind in payments for at least one credit commitment or domestic bill over the past three months.

According to Credit Action, in December 2004, 1.2 million electricity and 1 million gas domestic customers were behind in repaying their debts to their supplier. Additionally 20% of people say that they often neglect checking their bank balance because "they are too scared to find out how much money they have", according to Lloyds TSB.

Credit Action also reported that the number of people searching for help to manage their debts had almost doubled in May in 2005, compared to figures in May 2004 and a survey from Relate revealed that 44% of couples find money to be a contentious issue in their relationship and a quarter of people in debt are receiving treatment for stress, depression and anxiety from their GP.

It doesn't have to be all doom and gloom however. If you're lucky enough to have no outstanding debt, you can keep you finances in shape by exploiting the services of sites such as moneynet, which provide financial product price comparison information and extensive consumer information guides. If you have any outstanding debts, you can seek advice from the Consumer Credit Counselling Service (CCCS) or Citizens' Advice and financial comparison sites like lowermybills and moneynet also provide detailed research on debt consolidation loans and debt management.

Resources:

http://www.moneynet.co.uk/credit-card-guide/index.shtml

htt p://www.creditaction.org.uk/debtstats.htm

About Rachel

Rachel writes for the personalfinanosaurus Cashzilla

http://www.cashzilla.co.uk

Rachel has been writing personal finance related articles for six months and has learnt so much about mortgages and life insurance, that nobody invites her out to dinner anymore. :(

---

Vesting and Your 401(k)

Do you have a 401(k) retirement account? Are you vested... Read More

The Good and the Bad of Money Management

Good money management needn't be difficult. In fact, there a... Read More

Budgeting Your Way to Financial Freedom

Financial freedom cannot be achieved without budgeting. Budgeting involves tracking... Read More

What Happens if You Die Without Making a Will

If you die without making a Will in the UK,... Read More

How to Save Money in a Grocery Store

Now there are ways to save money in the grocery... Read More

The World is Not Enough - Calling for a More Ethical Approach to Personal Finance

At a time when the entire world's attention is focused... Read More

Ways to Save Energy and Slash Electricity Bills

1. Lighting & Light Bulbs Install low energy light... Read More

Chex Systems ? Why Every American Needs To Guard His Checking Account With His Life

Most Americans have been brought up to be concerned about... Read More

Money Matters - Really!

One of the biggest challenges facing black RELATIONSHIPS today are... Read More

Bank On It: Places to Hide and Invest Money

Today I passed a thermometer at a bank that read... Read More

Creating A Household Budget

Creating a budget can be a very difficult task. Although... Read More

Improving Your Financial Position

If you want money you need to learn how to... Read More

How to Draw a Personal Budget that Works

Many people spend their little income haphazardly without any planning... Read More

Bankruptcy Laws Get Tougher - More Expensive

If you've been thinking about filing for bankruptcy, your best... Read More

Banks Are More Than Just A Place To Park Your Money

If you've been to a shopping mall lately, you've probably... Read More

How You Feel Affects How You Shop & How Much You Spend

Have you ever stopped to think about how your "mood"... Read More

One Income Source Is Not Enough!

My personal opinion is that in today's new economy, it... Read More

Roth IRA Contributions - IRS Rules

Confused about whether you can contribute to a Roth IRA?... Read More

10 Quick And Cheap Ways To Cut Your Heating Bill

When you received an energy (heating) bill last winter, were... Read More

Retirement Income Needs---Less Than You Think?

It is widely written that you need 75% of your... Read More

How to Choose Wisely a Credit Card

So, you've made the decision to apply for a credit... Read More

Identity Theft is a Major Problem: Whose Responsibility is It to Protect the Consumer?

We have heard a lot about consumers' personal information getting... Read More

How To Protect Yourself Against Identity Theft

Identity theft is a serious crime that continues to grow.... Read More

Want Your Savings to Earn a Higher Rate of Return? Try Internet Banking

Doesn't it seem like the only impressive numbers we've seen... Read More

A Quck Lesson in Saving Money

Did you have a piggy bank when you were a... Read More

The Changing Shape of Family Finances

Super-mumsIt seems that the proof of maternal efforts is no... Read More

How To Reap The Rewards With Rewards Programs

Recently, many of these loyalty rewards programs have come to... Read More

Budgeting the Key to being Financially Stable

Single Mother's in need of Financial GuidanceBudgeting is key to... Read More

Stretching Your Grocery Dollars

Shopping for groceries is an inevitable fact of our ever... Read More

How to Balance Your Checkbook ? Get a Calculator and Pencil and You are Ready To Go!

Despite how easy it is to balance a checkbook, very... Read More

Saving Money - Are You Doing Enough?

It is estimated that we, as consumers, waste an average... Read More

Why We Are Never Satisfied with What We Have

I have to admit, I do it too. I complain.... Read More

Save Money on Gas

Gas prices have soared to unimaginable heights of late. Since... Read More