9 Million People Have Debt Problems
Published / Last Updated on 27/11/2013
9 Million People Have Debt Problems.
In the run up to the festive season spending spree, the financial services industry funded Money Advice Service (MAS) - or "talk to Ma" as you may have seen them advertised on television, has released a report suggesting that just under 9 million people are already struggling to pay their debts.
The report suggests that the debt spiral is twisting even more out of control with the hardest hit areas being the poorer areas of the country with Hull, Knowlsey, Liverpool, Manchester and Nottingham and Manchester all hitting 40% plus of the population having debt issues.
The report claims that 18% of the UK overall has problems and sighted easy access to credit and people getting deeper into the debt spiral of using payday loans as a means of staying afloat.
Comment
Today, the Office for National Statistics has released a report suggesting the UK recovery has been fuelled by consumer spending and indeed, Mark Carney, Governor of the Bank of England has suggested to the Treasury Select Committee that the central bank be given more powers to control the banking sector and prevent a debt fuelled lending and spending frenzy.
We have to say we agree, even now there is talk of a 95% loan to value mortgage rate war, encouraging more borrowing.
We suspect though that the Government has a conflict of interest as it needs spending to shore up the economy, i.e. it needs inflation to devalue its debt. Greater rules for responsible lending may come into play as well as capping payday loans rates, but we suspect any additional powers will not be enough to derail the debt fuelled recovery and people will increasingly get themselves into trouble.
If you are experiencing debt problems we suggest you contact the National Debt Helpline funded by Government or contact a debt counsellor at the local Citizens Advice Bureau.