Personal debt close to all-time high
Increased living costs are pushing people in debt they cannot repay, a think-tank from the Centre of Social Justice (CSJ) has revealed.
According to the study UK personal debt currently stands at £1.43trillion with households owing the equivalent of 94 per cent for the UK’s economic output last year. Average household debt, including mortgages, is now £54,000 – almost twice what it was ten years earlier.
Whilst for many their debt is manageable there are real concerns should households encounter any form of unemployment; 3.9 million families do not have adequate savings to cover even one month’s rent or mortgage repayment, leaving them financially vulnerable.
The report by the CSJ concluded by highlighting the physical debt is only part of the problem:
“The current levels of debt not only have severe financial implications but also more wide ranging impacts on people’s mental health, family stability and ability to work. These are especially pronounced among low income households.”
Solicitor Andrew Watson is all too familiar with the emotional impact debt can have on a person:
“Debt plays a very real part in the majority of our lives nowadays. Whilst debt such as a mortgage is seen as ‘the norm’, there are an increasing number of households teetering on the financial brink and for whom the threat of bankruptcy seems never far away.
“Our team is fully aware of the impact debt has on a person and their family and the distressing situation that occurs when receiving a statutory demand, particularly if the demand is unwarranted. That is why we are working with many people who have received a statutory demand from a creditor. In certain circumstances we may be able to apply to the court to have the statutory demand set aside or have the debt reduced.
“If you have received a statutory demand and believe there are sufficient grounds for appeal contact us immediately to see if we can help. We work on a no win no fee basis so there really is nothing to lose and peace of mind to gain.”
Content correct at time of publication