According to a recent report released confirms more than four million people (4,258,737) fear being made redundant. The changing economic climate has led to a 50% increase over the last three months with those aged between 25 and 34 most worried.
The number of people who admit they have fell behind in making payments with some of their expenses has increased by sixty percent.
The bleak situation faced by many consumers has raised concerns about the UK debt crisis as it is estimated almost 1 million people are living on or near the bread-line.
Debt experts debtadvicedesk.com believe the current concerns faced by the British public is only the tip of the iceberg;
“On a daily basis people are getting in contact to ask for debt help. Most people tell us they just can’t make ends meet.”
debt advice desk spokesperson continued “Most people in the UK have debt, however it only becomes an issue if payments are missed and creditors begin to chase for payment. In these circumstances the righ debt support can give people hope.”
“The majority of people just want to get back to normal; sleep and eat well again without the worry of debt and the prospect of losing their jobs”.
Debt can consume people and the Debt Advice is proud to offer debt support for people living in Scotland as well as the whole of the UK. Most popular regions for debt advice in Scotland are Glasgow, Stirling, Clydebank and Alloa.
Solutions to debt
The solutions to debt include a debt management plan, Protected Trust Deed or Sequestration.
A debt management plan is an informal arrangement with creditors whereby you agree to make monthly payments. The plan can be stopped at any time by either party and offers maximum flexibility with some security.
A Protected Trust Deed is an affordable formal agreement whereby you enter the trust deed usually for 36 months (this can be longer or shorter depending on your return to creditors) and you will repay a percentage of the money you borrowed. The rest of your debt will be written off – as long as you make constant repayments for 36 months.
Sequestration is the Scottish equivalent to Bankruptcy – it is the most severe on your credit rating but in some instances the only option is to sequestrate yourself. After the 1 or 3 year period (depending on circumstances) you will be debt free, although it will impact on your credit rating.
In England, Wales and Northern Ireland you can enter an IVA which is the equivalent to the Scottish Protected Trust Deed. This is a 5 year solution and allows you to make an affordable repayment to your debts and enables you to write off the rest of the money borrowed. Your credit rating will most likely be affected as a result of this solution.
DebtAdviceDesk believe, “Unfortunately, the later people wait for debt advice the fewer opportunities they have. debt advice should be specific to the individual, based on their personal and financial situation.”