Figures recently released by The Money Charity seem to show the level of personal debt written off by financial institutions and banks reached an all time low during the first three months of 2014. The bank wrote off the equivalent of 7 million pounds a day to individuals; the smallest sum since 2008.
There may be another interpretation to the figures, however. It may well be that debtors are learning to better manage their money and debts rather than the banks being less willing to write off a portion of a debt within a Debt Management Plan (DMP) or an Individual Voluntary Arrangement (IVA).
Whatever interpretation you choose, the figures show that it is crucial that people look to see if they can afford to service a debt before it is taken on board. The headline figure shows that overall average household debt is still increasing. The figure in April 2014 was over £54,000.00 which is inclusive of mortgages and other unsecured debts such as credit cards, loans and bank overdrafts.
If a debtor finds they are unable to manage or service their debts it is important they take free debt advice as soon as possible. There are a number of charities that offer free debt advice such as the Citizen’s Advice Bureau. Also the commercial sector offers free debt advice, for example I am a Personal Insolvency Lawyer and will always take the time to give free debt advice and guidance to anyone that phones or contacts us.
If you would like free, confidential advice on debt issues, please get in touch today.