Considering that a staggering debt average for UK citizens of £30,615, it’s easy to understand why economists are critical about the national debt increasing by £5,170 per second. At this rate, the United Kingdom will soon just be another statistic vying for position along with America and the European Union. What does this mean for the consumer?
It’s All In the Numbers
A combination of ultra-low interest rates and the ease of access to credit is sending the British down a slippery slope of financial woes. According to research, the answer lies in the nation’s ability to trust in the corporate structure.
This not only means the ability to trust that debt will make it all better, but also that there will be a steady flow of income to cover these debts. When consumers hit a financial speed bump, savings are usually not sufficient to cover expenses as the reliance on debt is too great.
There Is Hope For the Blacklisted
Tough economic conditions have rendered some financial institutions a little more lenient. This means that even consumers who find themselves blacklisted may have access to finance. Those who are looking for the best personal loans for bad credit 2018 must be aware that although the terms and conditions set by financial institutions are tough, they provide that glimmer of hope to those who need funds urgently.
A Long Term Solution
It takes a number of years to get out of debt and with the added burden of bad debt, this can take longer. Once the debt is paid off, it is estimated that consumers will need to wait another six years for big ticket items to come off the record.
This period could take longer if there is pending legal action and lenders have sent off the files to debt collectors or attorneys. For this process to go a little faster, consumers are encouraged to apply for a secured credit facility. This type of facility provides the lender with the security that the debt will be repaid in the event of a default. The consumer benefits by having the opportunity to repair their credit score.
The careful management of debt means that consumers are able to use their debt for the intended purposes. A strict budget and “emergency-only” approach could steer consumers away from tough financial times. For those who already find themselves in the deep end, perseverance and determination go a long way.