Recent statistics have confirmed that the UK Inflation rate has fallen to its lowest level for 2 years. Low inflation suggests the cost of living is lower for the things we buy. Statistics show that employment has risen too.
So, what does this all mean? Well, it suggests that more people are in employment and the cost of living has become more affordable so more people may feel we have extra money in our pockets.
The Office for National Statistics revealed the drop was largely due to energy bills and fuel falling.
Mike Hardie, ONS head of inflation, said: "The fall in inflation is due mainly to cheaper gas, electricity and petrol, partly offset by rising ferry ticket prices and air fares falling more slowly than this time last year."
If you have debt worries, then it could be the best time to seek debt advice. You can speak to a debt advisor at Debt Support Trust on 0800 085 0226.
Unemployment Rate Falls To 2.5%
The unemployment rate fell to 4.0% - a joint 43 year low - with 32.53 million people in work across the UK.
As inflation falls and employment rises it should, at least in theory, help people struggling to afford their month to month living costs. However, for many people a small cost saving may not be enough to pay the essential bills and also contractual debt obligations. If you feel your monthly repayments to debts are too difficult and you don't have enough money for essential living costs each month, then why not have a confidential conversation with our debt advisors?
Our debt advice team assess your income, expenditure, assets and liabilities alongside your debts. We can then make recommendations on how to improve your finances. We can recommend adjustments where your expenditure is too large or alternatively suggest a debt solution. If we recommend a debt solution we will explore all options and consider the pros and cons of each route forward.
Insolvency Rates Rising
At the end of last month it was revealed personal insolvency figures in England and Wales rose to a 7 year high of 115,229, a 16.2% rise from 2017. Insolvency debt solutions, such as bankruptcy and IVA's both rose during 2018, however there was a much greater increase in people entering the latter.
There was a 9.8% rise in the number of people entering bankruptcy, however there was a 19.9% rise in those entering an IVA.
An IVA allows people struggling with their debts to repay an affordable contribution each month towards their debt, typically for 5 years. There are other solutions available too, such as a Protected Trust Deed or DAS in Scotland or a debt management plan. To determine the correct solutions we look at a person's financial and personal situation, before explaining the relevant solutions in detail.
Get Debt Help
If you're struggling with debt and find making your monthly contractual payments to your debts difficult, then you can get confidential and supportive advice from Debt Support Trust. You are under no obligation to proceed with our advice, but sometimes just sharing your concerns and worries can help.
You can speak to a friendly adviser at Debt Support Trust on 0800 085 0226 or complete our online debt test for a suggested answer to your debts.