I was on GMTV and Sky News this morning talking about the new debt figures from the Citizens' Advice Bureau - got such a response it crashed Moneymagpie. Aargh! Thankfully it is up again and my hosting company has sorted the problem out so it shouldn't happen again.
I'm not in the least surprised that the CAB now finds that debt is the most common problem it deals with. I think it is going to get worse before it gets better. So much money has been lent out (we now owe over £300 billion in loans, credit cards, overdrafts and HP) and so much interest is being charged on it, that even if no more is borrowed, the current debt across the country will keep growing for a year or more.
There are ways out though and we have loads of them on Moneymagpie:
- Obviously - switching all essential expenses like fuel, insurance etc to cheaper ones where you can
- Switching your debts to cheaper ones where you can (I say 'where you can' because it often depends on your credit rating - but you can check that for free beforehand)
- Cutting back on everything that is not essential
- Getting as much as you can for free
- And, importantly, increase your income. We have loads of ideas on that - many of them pretty easy things you can do in your spare time.
On the other hand, if it really is too much to handle, bankruptcy or an IVA may be the answer. Personally I think it's best to talk to one of the free advice agencies first before doing anything drastic. The Bankruptcy Advisory Service are good, as are the CAB, of course, and the CCCS.
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