Debt counselling to the rescue
Debt counselling has helped over 1.4 million people with debt problems during the past year and counsellors are bracing themselves for an even bigger demand for help in 2008.
People have difficulties coping with debt that matches or exceeds their current wage. As the national average annual income is less than £25,000 there is very little left to pay unsecured debt once housing and primary utility bills have been paid.
Who is asking for debt help?
Many seek debt counselling when their overall debt reaches £13,000 and it is not just the poor who are seeking debt help. Even those from the more affluent end of the market are struggling with increasing mortgage and interest rates.
The highest percentage of people who seek debt counselling are women. A minority have even reached the point where they are prepared to kill themselves rather than live with the pressure of accumulating debt. However, after two hours of debt counselling, many realise that their life has not been completely taken over and that there are ways of resolving what could seem like a hopeless situation.
So debt counselling does work?
Debt counselling provides solutions to debt problems and is customized to an individual’s needs. This way, debtors only pay back what they can comfortably afford and they no longer have the worry of having to deal with their creditors.
Debt counselling is a way to discuss financial concerns and find options to reduce debt. This could be in the form of IVA help, debt management or a consolidation loan.
