credit card bankruptcy statistics
Debt Can Harm Families
Personal debt (of which a substantial amount is credit card and unsecured loans) in the UK stood at a staggering £1,457 billion at the end of January 2009 and someone, somewhere, is declared bankrupt or insolvent every five minutes. These cold statistics don’t tell the full story of the real casualties of debt.
All the latest studies show that debt dramatically affects family life. On average, 78% of people surveyed say that being in debt affects relationships within their family and 75% say that debt has had a serious effect on their health. As many as 88% say that they are kept awake at night worrying about debt. That situation is aggravated as the same surveys find that serious debt issues are typically ignored for as long as nine months before something happens which finally triggers action. The cause of these epiphanies can include divorce, the threat of repossession or a visit from a bailiff, job loss or being made redundant, or a serious health problem.
Because a lot of people’s knowledge of how to deal with a serious debt problem is virtually non-existent, when they do decide to go for help, most simply don’t know where to turn. Many turn to the Citizen’s Advice Bureau, but this government funded volunteer-staffed organisation is overloaded given the depth of the current credit crisis. Its advisers are faced with more than 7,000 new debt problems each day. So, is there anyone left to turn to?
Families in debt desperately need timely, honest, straightforward advice. There are some shall we say less than reputable companies in market offering questionable advice with nothing but their own commercial gain uppermost in their minds. Guardian Financial Group and it’s sister company Credit issues have been at the forefront of preaching and practicing the very highest professional standards, regulated as they are by the Ministry of Justice and using their own, highly qualified, in-house legal team to be sure of success.
In most cases there are usually straightforward solutions to serious debt problems. If the debt that’s causing concern is on credit cards or unsecured loans that were taken out before 6th April 2007, it may even be possible to have the whole amount totally written off! Credit Issues recently challenged a client’s credit card balance of over £16,000 due to inaccuracies in the lending institution’s administration procedure. The debt had been sold off to a debt recovery agency when the client fell behind with his payments. After examining the agreement Credit Issues was successful in removing the client’s liability to the debt and was able to clear the entire balance of £16,029.50. In the first three months of 2009, Credit Issues has contested well over a £1 million of consumer debt and is experiencing uparalleled demand for its full on-site specialist legal team.
Other possible solutions can be as simple as writing to your creditors, using debt management or IVAs, consolidating the debt or even bankruptcy. There will always be an answer that can return family life back to the way it should be. Putting unsecured debts into a debt management programme can free up income and let you start regaining control of your debts. The increasingly popular IVA route will leave you ‘debt free’ at the end of 60 months and a similar solution, called a Protected Trust Deed, is available if you live in Scotland.
You just need to know which is the best solution for you and be assured that the advice you are being given is correct, professional and effective. So don’t bury your head in the sand and choose to confront your debt issues sooner rather than later. With a plan in place and light at the end of the tunnel you’ll be able to get back to normal family life, free from worry and stress.
Debt solutions: insolvencies fall
Please help us to manage our money so that we do not get back in debt.?
My husband and I filed bankruptcy last year and we were bombarded with credit card and new car offers. We took the bait and now we have two new car payments and three credit cards that are over the limit. We have been paying on them each month, but still have not been able to catch up with the late fees and over the limit charges. Our total monthly expenses is equivalent to 97% of our income. How can we ever get out of this credit card hell?? I have heard that 90% of people that come out of bankruptcy end up in debt again. I don’t want to be one of the statistics. We really need some good advice. Serious answering only. I would be willing to share my budget with someone who would be able to help us manage our money. – Thanks You!
I have had the same situation. BUDGET BUDGET BUDGET.. You will need to bring in more money from somewhere, part time job. cutting back..something.The best way to watch your money is to write down every penney you spend in a two week period, then go back and eliminate all unnessary expenditures. This method really shows how your money was spent Concentrate on paying off one debt at a time.. put as much money on one bill as you can and make minumum payments to the others until its there turn to be paid off. But remember to try and save a little all along..Even $5.00 bucks a week can start you off.