Aug 27 2008
UK debt pegged at 1 trillion pounds
An ongoing research being carried out by a group of British researchers have come up with astonishing results which indicate that the British population owes about 1.44 trillion pounds in debt in the form of credit card payments, mortgages, loans and other financial dealings. These are the findings for the period of 6 months ending 30th June 2008. The GDP generated by the country during the same time period was poised at about 1.4 trillion pounds thereby revealing that the debt money owed by the British clearly overshadowed the income generated in the UK. Surely a shocker of a revelation.
It is being speculated that if the prevailing market conditions and the economies continue to be in the sorry state of affairs in which they are now, the personal debt situations will only deteriorate further leading to a substantial spur of bankruptcy cases. Also disturbing is the finding that around three million borrower’s have had to face their loan or mortgage applications getting rejected at least once in the last 18 months. With most of the consumers faulting with their payments the companies have resorted to strict measures. This tightening of the lending criteria has resulted in individuals even with a good credit history to face rejection with their applications. The financial health of UK homes is currently been reported at an 11 year low. All this is resorting the average households to cut down their monthly budgets and to move towards options like debt consolidation. But debt consolidation when done without adequate knowledge results in worsening of the debt situation as it is doing in most of the cases in UK. What is most surprising is that the Britons seem to be living in a denial about this grim condition. With more than 95% respondents claiming to be familiar with their personal expenses only a small marginal number could respond to further interrogation.
With the cost of living increasing at a sky rocketing pace a huge chunk of population who are already in debt are increasing the amount they have already borrowed. The solution to this malady clearly lies in debt management. Making an earnest effort to clear your pending debts, tracking unwanted expenses and following a budget will surely prevent you from burdening yourself with any more debts and at the same time provide relief from your financial burden.