The recent recession (which the headline writers now say we are slowly starting to climb out of) hit hard and fast. Whilst everyone was quick to blame the banks’ exuberance and penchant for huge bonuses and high risk deals, the truth is that the age of easy credit for all was the real cause of the financial meltdown. Unlike other recessions, this one has hit everyone, from the average man in the street to the high-flying city bankers and the numbers of people seeking debt help has significantly increased.
Because credit cards, ‘interest free’ credit and other financial carrots were dangled in front of an eager and willing public for so long, many people have found themselves seriously overstretched financially when the doors slammed shut on the easy credit culture of the 90s and as a result more and more people are looking for debt management solutions or even ways to write off debt. A far more cautious financial market is now less willing to repeat the same mistakes of that boom time and is coming down hard on those in financial difficulty. Despite billions being pumped by the Government into the banking industry, there has been very little trickle-down effect to the ordinary consumer, leaving them in as much financial trouble now as at the start of the crisis, and consequently many are seeking debt solutions from IVA companies and debt management services.
The headlines may claim that the green shoots of recovery mean an end to the current financial crisis. But the aftershocks of one of the worst meltdowns in banking history are still affecting ordinary people with mounting debt problems. The average household debt in the UK (including mortgage repayments) is over £58,000. The average owed by every UK adult is £30,188 (including mortgages). This is 130% of average earnings. So it’s obvious that personal debt is still out of step with income, meaning that the after effects of the recession are set to continue for some time to come.
Tags: debt, Debt advice, debt help, Debt management, iva
Hi, Interesting, I`ll quote it on my site later.
Worker
Hi,
I just wanted to share a great free resource for problems with credit card addiction or compulsive debt (real addiction not just getting behind).
This is a nonprofit organization that has free (telephone) support groups available in the UK: Its called Debtors Anonymous and the web address is http://www.debtorsanonymous.org
The groups are great, nonpressuring but full of good and gentle help for anyone with Credit Card Addiction, or compulsive debt and/or financial anorexia/compulsive underearning (some have this ‘underearning’ pattern in the groups but not all, if you have any sort of debt addiction you qualify).
These groups are 100% free and it is a nonprofit organization.
Best, John
Hi John
Thank you for your comment. We support such initiatives and as you mentioned, it is important that people suffering from such addictions are aware that there is help and guidance available.
Thanks
the last quarter of 2009 seems promising as we have seen lots of signs of econic recovery against the massive economic recession. i hope that in 2010 all our economies would be back on track. recession really sucks.
I was looking for this the other day. i dont usually post in forums but i wanted to say thank you!