“From a debt adviser’s perspective,” says a debtadvisersdirect.co.uk spokesperson, “the survey brings both good and bad news. It’s worrying that 27% of people questioned sometimes or always feel their finances are out of control. A full third of respondents, however, are not in debt at all and 44% are saving up to £500 per month.

“Furthermore, most of the 37% whose spending habits have changed recently are making a deliberate effort to reduce their spending,” the debtadvisersdirect.co.uk spokesperson continues. “Although it’s worrying to see so many people having to cut back, it’s reassuring that so many are acknowledging the need for it and taking action.”

As long as people act before their debts get out of control, there’s often no need for them to take any action beyond learning to budget effectively – although they can still benefit from professional debt advice: “A debt adviser can help set realistic targets and suggest ways of reaching them. In more serious cases, however, debt advice in itself often isn’t enough. Once someone’s debts have reached a point where their income simply won’t stretch far enough, it’s imperative they take more direct action as soon as possible, whether that means a debt management plan, a debt consolidation loan or a different debt solution.

“We would always advise people to talk to a company that offers impartial debt advice and a comprehensive range of debt solutions, as everyone’s needs are different. A debt consolidation loan, for example, can help someone who needs to simplify their finances and reduce their monthly outgoings. Consolidating their debts gives borrowers a chance to arrange repayments at a rate they can afford – they can arrange to pay back the debt consolidation loan more slowly, thereby reducing the size of each monthly repayment. Even though this means they’d be in debt for longer and it may cost more in the long run, many people who’ve taken out a debt consolidation loan consider this a price worth paying, as it lets them regain control of their finances and frees up the money they need for essential living expenses.”

Though it’s a valuable debt solution, a debt consolidation loan is by no means the only one available to struggling borrowers. “Some may be better off with a debt management plan, an IVA (Individual Voluntary Arrangement) or a debt consolidation mortgage. A debt consolidation mortgage, for example, can deliver benefits similar to those of a debt consolidation loan, along with – potentially – a lower interest rate and/or longer repayment period, although securing a debt against property obviously comes with its own risks. Choosing a debt solution is a big decision, and one which should never be taken without professional advice.”

About debtadvisersdirect.co.uk
Debtadvisersdirect.co.uk helps people with financial difficulties, providing free advice and tailor-made debt solutions.
www.debtadvisersdirect.co.uk