In the current economic climate in the United Kingdom, staying on top of your finances is more important than ever. It is crucial that people understand that there are many difficulties and problems associated with debt and that the level of people struggling with debt appears to be on the rise in the UK. A report issued by Unison and the TUC has announced that there are 3.2 million households in the country struggling with debt. This is a rise of 28% over the last three years, when 2.5 million households were struggling back on 2012.
The report states that an additional 700,000 homes have fallen into debt in this period and these homes are now spending at least 25% of their monthly gross income on paying off overdrafts, loans and credit cards. As you would probably expect, the groups that have been hit hardest by these changes have been low income families, young people and the self-employed. All of these groups can be particularly vulnerable at times and the availability of credit can often lead to greater problems and issues.
It is believed that problem debt costs the UK economy £8.3bn, at least in figures released by StepChange, but it should be noted that the cost of debt is about more than just money. People struggling with debt face a lot of difficulties in life and will often feel that they are under considerable stress and pressure. This can impact on their health, it can impact on their relationships and it can impact on their ability to make their way out of debt. This means that many people fall into a downwards spiral of debt, which means that their finances and their health will only get worse.
Take control of your finances
This means that there is a growing need for people across the UK to wake up to their finance issues and start to move forward with their life. There are many ways in which this can be done, but of course, people with bad credit, which is almost inevitable for people when they have so many bills to pay, will often struggle to get finance that would allow them to consolidate loans or make their way out of debt.
This is why debt consolidation through guarantor loans is a great idea. Guarantor loans are available to people with bad credit ratings but at an affordable rate. The role of the guarantor provides the loan firm with confidence, which means that they can provide loans to people that need them most.