When Are Debt Problems Serious?
Published: 16 April 2012 By Peter Thompson Leave a Comment
New research shows that Britons have to reach over £14,000 of debt problems before they consider they are in serious financial difficulty.
According to Bright Grey’s latest financial safety net report, Britons only consider themselves to have serious financial difficulty once they are reach some £14,416 of debt.
This may seem a staggering level but interestingly enough it is less than the £15,837 of debt tolerance recorded by the same research in 2010.
Roger Edwards, proposition director at Bright Grey, commented: “Attitudes are moving in the right direction but there needs to be a sizeable shift. As a result, we need to keep control of our finances so we have contingency plans in place if we urgently need access to cash.”
He continued: “People are becoming increasingly aware of the impact of high debt yet are still failing take out adequate protection.
“Britons need to make financial provisions for their future and not live under the hope that state benefits or bail outs from family and friends will allow them to maintain their standard of living if they lost their income.
“Protection products are cheaper than ever and it is crucial that people recognise the significance of putting an appropriate financial safety net in place.”
MoneyHighStreet.com comments: “It is staggering that people are ‘comfortable’ to get themselves into so much debt before considering they are facing a really financial challenge.
“It is fair to say that many people are really struggling now and regularly find that their outgoings exceed their income. They are facing debt problems which will not go away.
“To cope, as well as dipping into savings, some are borrowing money and even using credit cards to fund day to day living costs. But if you are needing to borrow money and yet cannot repay the debt, if your outgoings consistently exceed you income, it really may be time to seek professional advice.
“Whilst only few seek debt advice. This really isn’t sensible.
“You can contact organisations such as the Citizen’s Advice Bureau, the National Debtline or the Consumer Credit Counselling Service to get some free, independent debt advice from the experts.
“Make sure you get the best prices on the products you do buy. Many consumers are now shopping online and using such as voucher sites to get the best deals.
“If you can, plan expensive activities, such as your summer holiday, well in advance too. That way, you hopefully have time to save money to pay for it and also take advantage of any special offers available.”