Falling into debt can be a serious problem for many, especially at this time of year. The latest research from YouGov found that almost one in three people in the UK will go ëinto the redí over the Christmas period.
Thatís a staggering 11% of the country who will lose track of their spending- with a massive 31% of Brits going into some form of debt to fund the festivities this year.
The nation is on the edge of breaking point in the current climate, with household finances being stretched to the limit. The rising cost of food, fuel and utilities have pushed up the rate of inflation, which has added pressure to personal finances. With inflation rising to a staggering 5.4% in September and now falling to 5% in October, the rate is well above the Bank of England target rate of 2%.
High inflation means a reduction in real term finances. This has a direct result on consumer spending power as the real value of incomes falls, whilst the cost of everyday essentials increases. Itís a lethal combination for individual finances, which could push people into debt.
Every month the debt charity Credit Action publishes their Debt Statistics. The December debt statistics show that the average household debt is an eye watering £55,808 including mortgages, which is up from November statistics.
By the end of October 2011, the average person borrowing on credit cards, motor & retail finance deals, overdrafts and unsecured loans totalled £4,226 per person!
The research also revealed that 331 people every day of the year are declared insolvent or bankrupt as a result of taking on too much and not being able to make repayments. This is the equivalent to 1 person every 60 seconds during a working day.
Debt management solutions
Debt has simply become a ìfact of lifeî for many individuals and businesses, according to Labour MP Alex Cunningham.
However, you do not have to face your debt problems alone. If you are concerned about your personal debt levels and wish to see them disappear in the New Year, you could seek confidential and specialist advice from Money Expert.
Tony Robert Smith
ìKnowing that a dedicated group such as yourselves are behind me and working with me to lift such a heavy burden from my shoulders makes what I have gone through and am still going through much easier to bare, and your support is testament that a Sisyphean task CAN be manageable and there is no need to struggle alone with debts.î
ìTo all of the team members at Immediate financial, I want to thank you very much for your commitment, dedication and hard work in getting me through such a difficult time. The support I have had during the time I have been a customer has been above and beyond all that I could have wished for, from the day I first contacted you to this point.î
ìMy account has been managed impeccably and the phone calls to discuss my needs on a month-month basis have been supportive and uplifting, and at times due to the circumstance in which these debts were created, I donít feel as though I deserve such help.
ìI will certainly recommend Immediate Financial to anyone who is in need of help with debt management. The last three years have been a pleasure to work with you and I look forward to the continued support and also the day when I no longer have such debt holding me back. Today I have felt the weight of £17,000 lifted and it is all thanks to you. ì
Ryan and Charlotte from Southampton
ìWe just wanted to say thank you for all your help to get my husband and I debt free!! It is the most wonderful feeling and we really could not have done it without the massive support from your friendly and helpful team.
ìYou were always so considerate, understanding and would always do what you could to put us at ease. Thanks to your fantastic team we now can be so happy knowing we are debt free and we want to say how grateful we are for that.í
Simon from Kent
ìI was in debt with a couple of credit card companies in 2009, and was struggling to keep up my payments, and was in despair, so I saw an advert with consumer expert Martin Lewis, about a Debt conciliation service.
I contacted Immediate Financial, and they put a programme together for me, to pay off my debts. At first you do get your creditors ringing you up for money, but I just put them on to Immediate Financial and within a few weeks the calls stopped and letters ceased. I have just recently finished with my financial plan and have paid up all my outstanding debts, saving a massive 55%. I thank Natasha Smith so much in helping with my debts, and would recommend highly anyone starting a plan.î
ìI would like to thank you and your team for helping me through these tough times. With your help and reassurance, it is making life much easier.î
ì I cannot thank you enough for you help, kindness and understanding regarding my issue.î
Gayna (Suzanneís mother) from Corsham
ìI hope and pray that you will be able to sort out Suzanneís problems as soon as possible so she can get back on track and start enjoying life again. Thank you sincerely for your continued help.î
ìAbsolutely fantastic. Such a good service, and patience, from you all at Immediate Financial. I am desperate to recommend you on!î