Debt Options: UK Borrowing To Outpace GDP In 2011

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) February 4, 2011 -- Debt Options gave their comments today on news that borrowing will overtake UK GDP in 2011. Respected financial consultant Grant Thornton has forecast UK personal debt will outstrip the combined economic output of every single UK business. Levels of personal borrowing were predicted to reach £133 trillion, a figure far higher than the estimated national gross domestic product (GDP) of an estimated £1.35 trillion.

The total owed by UK individuals has been estimated at £1.3 trillion, with £214 billion of that sum accounted for by credit card debt and personal loans. Figures for December 2010 from UK charity Credit Action show that if national levels of unsecured personal borrowing were averaged out across the population, each UK adult would owe £4,398. At the same time, one more person will be declared bankrupt or insolvent in just under every 2 minutes of the working day. Debt Options gave their comments about the latest figures:

“Over the years, there’s no doubt that borrowing has become far more commonplace within UK life and this inevitably means some people develop debt problems. Although there has been an increase in credit over the years, in our experience there hasn’t been a corresponding increase in awareness of debt management. Faced with serious problems, many find tackling things a little daunting at first and they may even imagine all sorts of distressing scenarios. At these times particularly, it’s important to remember that the law in the UK recognises and provides support for people with debt problems. Yet some people mistakenly believe the law only allows bankruptcy, when in fact there are other legally valid options. For example, the IVA is now over fifteen years old and it’s in wide use for serious debt problems”.

In the same quarter, every day 1,716 County Court Judgements were issued against unmanaged debts; 98 homes were repossessed; 248 landlord possession orders were granted and for the 3 months prior to October, 1,732 people were reporting their own redundancy on a daily bases. The team provided timely advice for those seeking help:

“The important aspect of any advice has to be quality. Whether someone needs credit card help, help to manage overdrafts and loans, whatever the situation it’s vital to get an independent overview of your options. There are companies who only offer IVA help, but we don’t believe that represents a good assessment of all the options that might be open to you. There are some circumstances where an IVA would not be appropriate, and some in which the consumer may weigh up their choices and begin to discuss bankruptcy as a way forward. Every case is unique and that’s why we take the time to discuss your financial situation and all your options. We are not affiliated to any lender, so our advice is impartial and honest. Of course we are always happy to provide IVA help, but we want you to be confident it would represent the best option”.

Anyone needing quality debt management advice including genuine IVA help should contact the team for free, independent and confidential advice. Expert staff are available to help today on freephone 0800 234 3605 or you can send an email at http://www.debtoptions.co.uk/contact-us

More information can be found online at http://www.debtoptions.co.uk/

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