The Burden of Debt

Over recent years personal debt in the UK has exploded. Since 1997 the total debt including mortgages was in the region of £940 million. Approximately 18% of that figure is unsecured credit, accounting for about £8000 per household.

This is a staggering amount of money. With interest rates being raised several times last year, the strain of maintaining our debt is taking its toll. Sources reveal that the UK's debt "has increased every single month without fail since April 1993".

As it has been relatively cheap to borrow money over that last few years it has been very easy to get access to money. Interest rates are widely predicted to rise further adding even more to the current £5 billion we are paying every month in interest.

According to the FSA (Financial Services Authority) one pound in every 10 we spend is borrowed money. It's very easy to shop around for good rates when borrowing money. Most of us still buy our financial products on the high street and the big Financial Institutions base the price of their products on what they think is the maximum borrowers are prepared to pay.

With the internet people are able to shop around for much better rates and this is driving the average price of borrowing money down. This does pose a catch 22 situation as the cheaper the cost of borrowing becomes the more people will feel they can borrow more. This does breed a nation of people that are living beyond their means. Debt can be very dangerous as you are effectively borrowing from your future to pay for today.

The wage rate is not growing in line with rising debts so somewhere along the line something has got to give. This may be in the form of the slightest interest rate rise which may be the straw on the proverbial camels back. One could associate it with a brick that is attached to an elastic band. You can gently pull and pull and nothing will happen, sooner or later the brick will finally budge and most of use will be walking around with a black eye.

If you do find yourself in debt then don't despair it's not the end of the world. As long as you face up to the fact that your financial position needs a makeover then you are on the right path. The first thing to is gather all you credit statements and get an exact figure of what you owe in total and what those monthly payments add up to. You need to be clear in your mind what you earn and what you owe. This sounds simple but you can't service your credit if your repayments are more than what you earn. If you find yourself in this position you need to consolidate all your loans into the lowest rate you can find. This will bring down you monthly payments and hopefully be more manageable.

If you need help on doing this then contact the National Debtline on (Freephone) 0808 808 4000 or the Consumer Credit Counselling Service on (Freephone) 0800 138 1111. These numbers are for UK residents only.

Grant Marwick is a freelance writer and owner of http://www.only-credit-cards.co.uk where you will find advice and more articles on Low interest Credit Cards and Bad Credit Credit Cards

---

Choosing the Right Credit Counseling Agency for You ? Some Tips

Credit counseling companies come in all shapes and sizes. Whether... Read More

Is There Something Called a Bad Credit Credit Card?

Is there something out there called a bad credit credit... Read More

Consolidate Your Credit Card Debt

With the popularity of plastic money in the present age,... Read More

Debt Elimination: Legal! Lawful! Ethical! Debt Elimination Really Works

You are trying hard to eliminate your loans but keep... Read More

Private Student Loans ? Dispelling The Myths

Private Student Loans ? dispelling the mythsIf savings, grants, scholarships,... Read More

Debt Consolidation Loan and Consolidation Loans

Debt consolidation loan services act as a third party intermediary... Read More

The Benefits of Debt Consolidation

It is quiet easy to get into financial difficulty having... Read More

Thinking Beyond Debt Consolidation Loans

Planning to devise a permanent solution to the problems of... Read More

Debt Consolidation - Free Information About Consolidating Debt

Millions of consumers across the globe are searching for a... Read More

Bad Credit Debt Consolidation Loan

Nowadays, many people can get into a bad credit situation... Read More

Online Debt Consolidation ? Devising Newer Ways for Changing Consumer Trends

Consumers today are getting wiser by the day. They are... Read More

Guide to Debt Consolidation Loans

Here is a useful guide to Debt Consolidation Loans. A... Read More

Debt Consolidation when You Find Yourself Overwhelmed with Bills, Bills, and More Bills

Many of us find ourselves overwhelmed with bills, bills, bills.... Read More

Bad Credit Debt Consolidation Loans - Getting a Debt Consolidation Loan, Even With Poor Credit

An online debt consolidation loan allows even people with a... Read More

10 Pointers on College Loan Consolidation

Should I consolidate my college loans or not?1. Still in... Read More

The Pros and Cons of Debt Consolidation Loans

You are swimming in debt. You have 4 credit cards... Read More

Debt Consolidation ? Be Careful When Trading in Your Car

The automobile has long been recognized as the classic American... Read More

Reducing Debt Through Lower Interest Loans

It happens to the majority of us, credit card debt... Read More

No-Cost Student Loan Consolidation

No-Cost Student Loan ConsolidationA no-cost student loan consolidation ? doesn't... Read More

Debt Consolidation with Free Government Grants? One Scam to Avoid

Have you ever seen a commercial or an ad promising... Read More

Debt Consolidation: How it Works

As long as consumerism flourishes most of us will be... Read More

Stafford Loan Consolidation

Stafford Loan ConsolidationA Stafford Loan, which can help to finance... Read More

Credit Cards Debt Consolidation

Consolidating credit card debt is never easy. Too often people... Read More

Avoid Bankruptcy

The first but definitely not the easiest thought that comes... Read More

Getting a Debt Consolidation Loan with Bad Credit

If you've ever tried to get a debt consolidation loan... Read More

Escape the Credit Card Death Spiral

You're burdened with crushing debt and at the end of... Read More

Debt Consolidation: A Way Out?

When you are living paycheck to paycheck and it seems... Read More

Getting the Most Out of Consolidation Loans UK

Before letting too much debt or too many payments get... Read More

7 Ways to Consolidate Your Debt

If you are in debt, you have several options available... Read More

Debt Settlement Strategies

One of the most common social diseases remains dormant for... Read More

Debt Consolidation: Friend or Foe?

Debt consolidation has become big business in this country over... Read More

How To Get Rid Of Debt Problems Step 3 -- How To Negotiate Reduced Payments With Creditors

First, make a list of your creditors (NOTE: you should... Read More

Cheap Debt Consolidation Loans - Inexpensive Way of Winning Financial Freedom

The rising cost of living can force you sometimes to... Read More