Will The Bleak Economy Mean More People Turn To Debt Management Companies?Will The Bleak Economy Mean More People Turn To Debt Management Companies?

With the recent news that Britain's economy is not recovering as quickly as predicted, it is believed that the demand for debt management services will continue to grow. Indebted households continue to seek professional advice regarding debt solutions such as a Debt Management Plan or IVA, and this may be due to rising unemployment, freezes on pay rises and uncertainty regarding job security. All this coupled with rising fuel costs, rising utility bills, rising car insurance and other financial pressures is stretching household budgets to their limits. Credit card bills and loan repayments are now way down the list of some people's priorities and for many it is a battle simply to afford to get by at the moment.

Chancellor George Osborne installed many tough cost-cutting measures almost immediately upon being elected, and it was widely acknowledged that such cutbacks were necessary in order to get the country back on the road to long term growth. The recent news of a lower than forecast rise in economic growth has been jumped on by the chancellor's critics, who have insisted that the cuts are being made too deeply, too fast. However, with the International Monetary Fund issuing a statement of support for the chancellor's tough stance, it looks as though the cost cutting measures will remain for the long term good of the economy.

Householders feeling the pinch and struggling with debt repayments may not be quite as supportive of the chancellor as the IMF. In the days when the economy was booming, house prices were rising and wages were at record highs, there was little to worry about. It seemed that anybody who couldn't afford to pay their bills at the end of the month could simply call the nearest loan or credit card provider and live off the proceeds until the next time a problem arose. Unfortunately, that access to cheap and easily-available credit has been cut off, as the Banks have tightened up their lending criteria in response to the economic conditions.

Many people do not want to go bankrupt and lose everything - so many people facing these problems are turning to professional debt solutions providers. People should have nothing to fear about approaching a debt management company for assistance. As long as they have a valid Consumer Credit Licence, then they will have had to pass many checks to prove their competence. They should also have a data protection registration, and some DMC's will have additional licences such as MOJ (Ministry of Justice) and may be affiliate members of professional organisations such as ICM (Institute of Credit Management). Any company that ticks all these boxes would give sensible, non-judgmental advice in regards to whether a Debt Management Plan could help if you are struggling with repayments.

There may be many more months of struggle ahead for some while Mr Osborne's measures to turn things around take effect. If you are struggling with debt repayments then debt management is certainly an option that could be considered to make things easier in the short term.
by Kevin Fielder
References and Bibliography
If debt management is something you would like more information on then contact UK Money Solutions who are happy to point you in the right direction whether you want to go it alone, use a charity or use their experienced services to administer a debt management plan on your behalf.
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