What is the current situation for debt in UK?

By Mr Bankruptcy

29th January 2021

The Covid pandemic has had a serious impact on individuals and businesses, and many people are going to need help with unmanageable debt in the months and even years to come.

The true extent of the effects of lockdowns and a restricted economy is now being understood and the shocking facts are revealing a story we should all be concerned about:

  • Adults in the UK owed £1,688.5 billion by the end of October 2020.
  • More than 15million, or 23% of the UK population are now in poverty.
  • Approximately 6 million people have fallen behind on at least one household bill during the pandemic, according to Citizens Advice.
  • UK firms could hold £100 billion of unsustainable debt by the time repayments of coronavirus support loans first become due in March.

Looking forward

Despite these startling facts, it’s important not bury our heads in the sand about debt matters. Debt places an intolerable amount of pressure on those who have personal or business debts and this strain often leads to issues with physical and mental wellbeing.

If you have debt, it’s important not to become overwhelmed as this is when a sense of powerlessness to resolve a problem can cause inaction. No matter how difficult your situation may seem:

  • Take time to understand the full extent of your debt problem,
  • Review your budget to see where it’s possible to make savings and ensure you live within your means,
  • Understand which are your priority debts so that you can identify which need to be addresses first,
  • Talk to creditors to explain your situation and seek their advice and support,
  • Talk to friends and family to help you manage the emotional impact of your debt,
  • Seek debt management advice if you can’t find a way to start managing your debts quickly.

You may know someone who is struggling financially at the moment. Spotting the signs of unmanageable debt in others can help you understand when debt is becoming a real problem. Your support may be needed to help them find the courage to seek more advice and start tackling the situation.

James Rosa Associates

James Rosa associates is a firm of debt advisors and debt adjustors. With a supportive and friendly approach, we offer a full range of advice and professional services to individuals and business owners/directors who face unmanageable debt or who are involved in civil or commercial disputes. Our services include:

  • Insolvency support
  • Negotiated settlements
  • Personal assisted bankruptcy
  • Mediation

We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.

Find out if you qualify for a free consultation

If you want to deal with an unmanageable debt, or bring a dispute to a swift and cost-effective resolution, contact James Rosa Associates, ring 0845 6807217 or email enquiries@jamesrosa.co.uk to find out whether you qualify for a free consultation.

Please be advised that all views expressed in these posts are those of the author and not of James Rosa Associates ltd.