UK Debt Advice
When people talk about debt, they`re often over-simplifying - `debt` can mean very different things to different people. After all, some people in the UK spend a tiny fraction of their income on their debts: paying off the occasional credit card bill, for example, or using a small overdraft facility once a year so they can spend that little bit more on their annual holiday.
For others, though, debt is a major worry. Every month, their debt repayments take up every penny of their available income, and they`re forced to cut back on everything from food to heating. It`s hard for them to imagine how they`ll ever clear their debts, when they can barely keep up with their monthly payments.
UK debt
At the end of March 2009*, UK citizens owed almost £1.5 trillion (£1,500,000,000,000). £1.227 trillion of it was secured against property and the rest was `consumer credit` (unsecured debt - on credit cards, store cards, personal loans, etc.).
This works out to around £60,000 of debt (including secured debt) per household - but the burden of carrying that debt is by no means evenly spread. It`s not even a question of numbers: a £5,000 debt can be overwhelming to one person, but easily affordable to another.
UK debt advice
Debt advice, on the other hand, is something that almost anyone can benefit from. Even someone with little or no debt should be familiar with the `warning signs`, so they can make sure they don`t run into any debt problems in the future.
Someone who`s having a hard time staying on top of their debts shouldn`t try to `go it alone`. Even if they`re determined to sort their debts out themselves, it`ll probably be a lot easier if they get some debt advice, whether it`s tips on budgeting, information about ways of tackling different debts, ideas about the best way to negotiate with creditors...
And anyone who doesn`t think they`ll ever repay what they owe should get some professional debt advice as soon as possible. A debt adviser can help them figure out if there`s a realistic way of repaying their debts, or if they need to consider insolvency, in the form of bankruptcy or an IVA (Individual Voluntary Arrangement) - or, if they live in Scotland, sequestration or a Trust Deed.
* The latest Bank of England figures available at the time of writing.