The UK is just one of many countries around the world which are experiencing extraordinary times. The global recession has had a serious impact on many millions of people from every corner of
the planet, with the infuriating exception it would seem, of the main instigators of the fall themselves.
Just about everyone else, irrespective of class or social standing has been affected in some way by the biggest crash in monetary infrastructure in decades. In the last five years alone, we’ve witnessed the demise of several major iconic high street chains; changes to national pension and private retirement portfolios; record unemployment and redundancy and the ruthless cull of one of our most beloved national institution ‘the Great British pub’.
We are the third most expensive nation in Europe when it comes to petrol, with an average cost per litre of £1.42p. It’s little wonder then that the Office for National Statistics (ONS) states that most of us are simply unable to deal with any further ‘unexpected financial expenses’.
To every problem there is nearly always a solution
Further case studies show that it is becoming increasingly more difficult to juggle home budgets due to inflation being substantially higher than earnings. Personal debt is becoming a major national problem and is resulting in a steep rise in property and other asset repossessions. In short, this country has become a difficult place in which to live you live alone and are not the best at managing your own personal economy; it can be too easy to fall into a spiral of debt.
You probably know many people who have fallen out of the black and into the red and they have simply buried their heads in the sand to hide from the problem. With most people this is a normal reaction as they have a fear of failure and so seeking advice is never one of their strong points. Therefore it doesn’t take much to fall into debt and when you do, it becomes very easier to fall into serious debt. Many loans have small print that can be rapaciously aggressive and if you transgress such rules then your personal situation can fast become very difficult indeed. From homeowners to students with tuition fees, many of us are tied into the potential danger of diminishing returns and serious debt.
Consolidation and looking to the future
The trick is that it’s important to know your limitations. Borrowing more to repay a loan is generally seen as the worst case scenario. Debt consolidation is considered to be the way forward and all debt companies use a method of calculating your current expenditure, modifying the way you spend and giving you the opportunity to get your life back on line. By modifying your lifestyle to fit your in-comings and out-goings, this will mean that your debt needn’t carry the potent negative connotations that it is nearly always associated with. What’s more, with effective advice and advocacy you could learn to manage your money more sparingly, whilst keeping a lookout for any potential financial obstacles that may threaten you in the future.
Being in debt is extremely stressful and unpleasant and can have far-reaching and sometimes tragic effects on family and friends. It’s therefore extremely important to seek advice at the earliest opportunity. You’ll find that most debt management companies are there to help with advice on what best to do next. Your mortgage lender will see repossession as the very last option so it’s important to keep them in the loop too. In a world still reeling from the effects of a devastating financial upheaval, it’s not always possible to avoid being part of the collateral damage. It’s important to realise also that the time of cheap loans and gratuitous free-spending for all, is very much over. It is now important to see the credit crunch for exactly what it is: the manifestation of gross irresponsible lending and overspending.
About the Author: Katie Latchford is a blogger who is always looking for new and interesting ways to consolidate and beat debt. For tips on applying for consolidation loans and effective budgeting, follow her on Google Plus.