Debt Defaults are on the Increase
Record numbers of UK consumers are defaulting of their debt, which can be viewed as a direct consequence of the credit crunch. The number of ‘charge offs’ (debts overdue by more than 180 days) has risen 3% since March, according to research by credit agency Standard & Poor (S&P).
Borrowers are being pushed beyond their means as livings costs are becoming more unaffordable, leading many to seek additional help to manage debt. Before the credit crunch became such a financial worry, the number of charge offs had been declining over the past three years due to more people opting to manage their debt through an Individual Voluntary Arrangement (IVA).
Help with Default Debt
If you have been missing payments then you might have been issued a default notice by your creditors. This is a letter to tell you that you are not up to date with your debt repayments and you are in default of your credit agreement. This could lead onto a CCJ (County Court Judgement) and if the defaulted debt is a mortgage or a secured loan then your home could be at risk of repossession.
But it is never too late to regain control of your financial situation. If you are struggling with your debt and you are worrying that you might default on your debt, please see if One Advice can help. We have specialist debt advisors who will help you find the debt solution which is right for your circumstances.
Take the One Advice 1 Minute Debt Test to see if you can become debt free in as little as 60 months with an IVA.
