British consumers with debt management problems should consider getting advice from professionals on how best to handle their financial situation.
Although it can be daunting to face up to the prospect of sharing your problems with others, let alone a stranger, doing so could help people discover the financial options available to them.
Earlier this month, research from insolvency trade body R3 revealed the extent of the problem when it published figures that show 900,000 Brits are struggling with debt on their own.
Despite the impact that the recession and subsequent burgeoning unemployment have had on the population, the report indicated that there are a number of barriers that prevent people from seeking out debt advice.
In fact, some 44 per cent of people thought their problems were not serious enough to take to a professional, while 16 per cent believed they were only in a short-term fix.
A further 14 per cent admitted they had chosen to deal with their problems alone because they were scared what others might think of them.
But often people will not be aware of the different financial options open to them without first having talked to someone who specialises in the provision of such advice.
Depending on their specific requirements, it could be that a consumer's best bet is to take on a debt management plan, which is an informal agreement with creditors to repay monthly debts at a more affordable rate of interest.
For those deeper in the red, an IVA (individual voluntary agreement) could allow them to pay off the debts they are able to afford while writing off the rest.
Then there is the last resort option of declaring bankruptcy, a legally backed up inability to pay debts that may provide those in dire straits with the new start they need.
According to the government's Insolvency Service, 18,256 individuals declared bankruptcy in England and Wales during the first quarter of the year, while 11,782 were granted IVAs.
|