While most people are aware that the debt issues facing the United Kingdom, when figures are released, there is always going to be a level of shock and surprise at the sum of money involved. The latest sums of money indicate that households across the United Kingdom have a debt level of £173billion which could cause considerable trouble in the future. A lot of the problems with this style of debt is down to the splurging caused on credit cards and with loans.

With people snapping up finance options to buy TVs, cars and home improvements, there are genuine concerns about the level of finance that is being taken out and the Bank of England has even taken steps to remind fund managers of the importance of being as sensible as possible when it comes to finance agreements.

It looks as though there will be a rise in interest rates for the first time in over 8 years, and this has left many people concerned about the potential payment problems that people may face. Mark Carney, the Governor of the Bank of England, has issued a letter to all of the fund managers to seek assurance that they will be able to handle the rush of investors who may look to remove cash from their accounts in order to pay for increases in their mortgage payments. With some people’s mortgage payments varying due to interest rates, a rise in the level of interest rates could have a big impact on the amount of money that people have to pay out every month.

Know that UK debt solutions are available

While many people are aware of the issues of finance, it seems as though people are still looking to take out finance to a high level. Analysis of figures indicates that the figures for people re-mortgaging between April and June reached £477million, which is the highest it has been in five years.

Findings also suggest that the amount of money that is owned on mainstream credit cards has reached £41.4 billion, a figure which is rising by 5.2% every year. It is believed that a lot of this is down to long term interest free deals, which encourage people to transfer balances from one card to another. It is important to be aware that UK debt solutions are available.

Continually transferring from one credit card to another is a cause for long term concern, and it isn’t a way to get out of debt. This is why opting to consolidate your credit card debt, perhaps through a guarantor loan, is a sensible way to move forward with respect to your finances.