More than half of Brits owe nearly £6,500 each in unsecured debt, such as credit cards, store cards, overdraft or personal loans. According to the Guardian Group Financial, 7% of people owe between £10,000 and £15,000, and 3% are struggling with unsecured debt over £30,000, so it is no wonder many of us could be losing sleep over unsecured debt levels.
It seems that we are in need of professional debt advice as many of us are struggling with unsecured debt in the current financial climate, as over a quarter of people have run up credit card debt buying for essentials such as food (29%) or to pay utility bills (22%).
Gary Forrest, from the Guardian Group Financial, said: “Consumers need help to face up to and manage their debt problems and regain control over their lives – not to receive yet more pressure from the credit companies. This dangerous trend has to stop.”
Unsecured Debt – Are You Losing Sleep?
The research also revealed that half us are worried about how to manage our debt, and worryingly 4% are losing sleep over their debt worries.
You don’t need to lose sleep any longer; there are a number of debt solutions on the market and one of these could be perfect for you. It can sometimes be tricky knowing which debt solution you are most suitable for which is why you should seek professional debt advice.
One Advice have an expert team of debt advisers who could suggest one of the following debt solutions:
Debt Management Plan: An informal agreement between you and your unsecured creditors. You agree to pay a single reduced monthly payment to your debts and, as the plan is tailored to your circumstances, you should have enough to meet your secured debt repayments.
IVA: Like a Debt Management Plan, you make reduced monthly payments to your creditors. But there are vast differences between the two debt solutions. An IVA allows a certain amount of debt relief, so you can pay what you can afford over a 60 month period and any unpaid debt will be written off on successful completion of the IVA.
Bankruptcy: Should always be seen as a last resort after alternate debt solutions have been explored, as there are long terms consequences of bankruptcy which cannot be avoided. However, if you believe that bankruptcy is the only option, We have a dedicated bankruptcy service who can help you through the bankruptcy process.