An Economist from the University of Nottingham; Dr John Gathergood, has warned that if independent forecasts, predicting a rise in unemployment of more than 2 per cent in 2011, are correct, there will be a huge increase in demand for debt advice. Demand could exceed levels previously experienced during the financial crisis.
According to Dr Gathergood’s research ‘Demand, capacity and Need for Debt Advice in the UK’ up to 5 Million people report arrears on credit at any one time, including arrears like mortgage repayments and other credit agreements. Many of these people agree with the description that meeting these repayments is a ‘heavy burden’. However, rather alarmingly just 1 in 6 of these people actively seeks debt advice at all. During 2010 1.4 Million people sought debt advice from charities.
Dr Gathergood said: “Despite demand for debt advice currently being at near all-time high levels in the UK the scale of potential need for debt advice among households remains much greater than the level of advice currently sought.”
“The report shows that the demand for debt advice is highly sensitive to the macro-economic environment, most specifically to unemployment rates and the cost of credit.”
“Statistical analysis suggests that individuals with the greatest level of problem debts are more likely to seek advice, yet still the majority of consumers with problem debt do not. Socio-economic and demographic factors play a large role in determining whether an individual with problem debt chooses to seek advice.”
Craig Gedey Marketing Manager at Award Winning Debt Management Company, Debt Advisory Line said: “Anyone who feels that making credit repayments is a heavy burden on their household finances should seek professional debt advice as soon as they can.”
“If the predictions of increasing unemployment and interest rates are correct for the rest of 2011 there could easily be a greater demand for help and advice.”
“At Debt Advisory Line we offer professional debt advice and real debt help for people struggling with money worries across the UK. Whatever your debt problems we can help you take control of your money. We understand how debt can affect your life and we thrive on providing award winning services with integrity, empathy and confidentiality.”
“On average we reduce our customer’s debt repayments by 50% by negotiating with creditors and we deal with creditors on behalf of all our customers.”
Anyone concerned about their debts can call Debt Advisory Line on 0800 157 7254 or visit the web site for more details www.debtadvisoryline.co.uk