If the recession has kicked in a little harder than you anticipated and your finances are looking decidedly tangled, rest assured you are not the only one in that unenviable position. Thousands of ordinary people are realising that the fiscal chickens are coming home to roost and the era of plentiful credit that we’ve all enjoyed for so long has consequences. Personal debt is now at record levels and still rising.
Average household debt in the UK now stands at £9,180 (excluding mortgages). This figure increases to £21,355 if the average is based on the number of households who actually have some form of unsecured loan. If you then factor in mortgages, the average rises to £58,290. Across the board, the mean average owed by every UK adult is £30,190 (including mortgages). This is 132% of average earnings. So it’s quite clear that expenditure is far exceeding average income.
But before you turn off every electrical socket in the house and barricade the doors, there are ways that you can help yourself to break this cycle of debt. And it’s very simple – seek professional advice.
Just talking to someone who understands the ‘matrix’ behind financial aspects can help you to make big changes in your life and, as a result, save a significant amount of money. Debt advice can give you a financial ‘health check’ to see where your finances could be improved. There are plenty of price comparison sites online that can help you reduce outgoings such as utility bills, broadband or phone bills, but if you’re still struggling to make ends meet, a debt advice specialist can look at other aspects of your life and help you put together a plan of action to reduce the gap between your income and your outgoings.
Whatever you do, burying your head in the sand and hoping that the problem will just ‘go away’ isn’t going to help. The first step in getting your finances back in order is to talk to an expert.