Ahead of annual debt statistics released by Debt Support Trust, we are posing the question, is everybody in debt the same?
We realise there are many reasons why somebody may be in debt and we also know that the majority of people feel scared, alone and unsure of the future. There are a number of ways companies try to manage their indebted clients; some will be referred to Debt Support Trust or another debt advice charity for help whilst others will be passed to a debt collection agency.
If you are actively dealing with your debt problem, liaising with creditors and trying to make repayments then should you be treated the same as somebody who refuses to recognise their debt problem?
The latest figures released from the Chartered Institute Of Personnel and Development (CIPD) predict unemployment figures will rise to 2.85m in 2012 – the highest since 1995. The figures look no better for 2013 with a predicted peak of 2.9m unemployed, however equally troubling is the forecast of continued “severe pay restraints”.
With many family budgets at breaking point, continued pay freezes or cuts could push people over the financial edge. The indicators show that unemployment will stick stubbornly at 2.5m until the middle of the decade at the earliest. These are sobering figures which may result in people missing their contractual payments and sliding into arrears for the first time. It goes without saying that people who find themselves in this position should seek help from reputable debt advice organisations as soon as possible. The reality is many of course do not, preferring to use lenders of last resort until their financial position becomes untenable. This often has the effect of reducing the financial solutions available to them by the time they do seek help.
Our approach to debt advice
Debt Support Trust actively promote the notion that people who seek appropriate advice should be credited for taking the difficult step of asking for help. We believe people should be treated with respect and guided towards a manageable debt solution which will eventually see them become debt free again.
A final thought, people are generally happy to take credit but they rarely want debt. However, the two go hand in hand. For many people the difference between having manageable credit or a debt problem can be a change to their employment status.