March 5, 2009
Unsecured Debt Continues To Grow
A debt management provider has reported a huge rise in unsecured debt, taken out by desperate people trying to get by during the recession.
EuroDebt reports that unsecured debt for homeowners rose to £38,683.33 in December 2008 from £37.087.36 in December 2007 – that’s, on average, another £1000 of unsecured debt, with ever-rising rates which continue to cripple many people financially.
Kevin Still, director of EuroDebt, says: “We have seen a significant shift in the number of clients who are home owners looking for help from debt management in the last six months. The increase in the average level of unsecured debt for home owners who signed up to our debt management plan is also a concern.
“This is highly indicative of the spiralling debt that families are facing, particularly with the spectre of job losses or loss of income making it hard to see how they can stay on top. Clearly many people are struggling under the current financial pressures, making it more important than ever that individuals take stock of their situation before it reaches a critical point.”
Unsecured debt is dangerous, simply. It has rates far beyond any secured forms of finance, it destroys credit scores and it only puts off the inevitable, rather than giving real answers. If you think you can only get by with a personal loan or another credit card, talk to a financial adviser as soon as you can. There are alternatives to being weighed down by costly, unhelpful unsecured debts.
SOURCE: EuroDebt, 20/02/09
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