Staying Out of the Debt Spiral During Recession

The Bank of England has recently verified that the UK economy is officially in a recession, and that this status is likely to continue through 2010. In the current economic climate, you can’t afford to be uninformed. To protect yourself from the downward debt spiral often caused during this time of recession, you must first understand what's going on and how to prevent it from affecting you. To find out what the debt spiral really is and if you’re susceptible, the article below will help.   


IF YOU ARE IN DEBT AND NEED HELP CALL THE DEBT PEOPLE ON 0161 905 0802



The Bank of England has cut the base rate, to all time record levels, in an effort to stave off recession and keep inflation from dropping below targets. These measures do not have appeared to have stopped the inevitable and conservative estimates are that the UK economy could shrink by more than 2% over the next year.
The global credit crisis has seen the near collapse of some of the UK’s largest, and oldest, banks. Many of these institutions would have failed had it not been for a multi-million pound bail out by the government. This bailout has left many of the banks ownership predominantly in the hands of the man on the street, and has been a bitter pill to swallow for many UK consumers. The huge bonuses and unjustifiable pensions the executives from some of these companies have awarded themselves, in spite of the government rescue plan, have been highly controversial, to say the least. Global Credit Crisis
Credit Card Debt All of this adds up to gloomy news for the UK’s population, with many people facing the prospect of losing their homes, and some facing even complete financial ruin. Increased numbers of consumers have been caught in the debt spiral, unable to afford the monthly repayments on their credit card debt, loans and everything else. Debt advice specialists have been deluged with enquires from members of the general public seeking IVA advice, debt management plans and other debt solutions such as debt consolidation loans.
Debt management plans and IVA’s (Individual Voluntary Arrangements) can be a lifeline for the overcommitted. They allow consumers to consolidate all of their unsecured debts into one affordable monthly payment, without the need for a loan and since the credit crunch the availability of loans, as a means of financing your way out of debt, has been seriously curtailed. By taking this action, it may be possible to relieve the pressure on other necessary commitments – such as mortgage and rent repayments – and could avoid the unnecessary repossession of a property or a family facing evection. Debt Management and IVAs

For people that are struggling financially with repayments on their unsecured debts, or in danger of falling behind with their mortgage payments, the best thing to do is to seek specialist debt advice now, before it’s too late. The current recession will wreak much havoc and leave many victims in its wake.

IF YOU ARE IN DEBT AND NEED HELP CALL THE DEBT PEOPLE ON 0161 905 0802