Government Forecast Reveals Debt Problems Could Soar
May 08, 2011 (PRLEAP.COM) Business NewsWith yet more shock headlines this month about the level of UK debt problems, debt management company Debt Options gave their comments on the latest official predictions. Controversy has followed the release of a forecast from the Government's Office of Budgeting Responsibility (OBR). It reveals the average family is expected to be over £77,000 in debt by 2015. There are also concerns the economy could lack the demand to drive economic recovery due to higher levels of personal debt.
Experts claim the OBR's forecast hinges around the capacity of UK householders to save less and borrow more. The level of debt predicted by the OBR represents an increase of just over £11,000 worth of debt for the 'average household'. The team at Debt Options gave their response:
"There are clearly a variety of reasons why people might find they are borrowing more at the moment, or will do in future. There has been marked instability within the UK jobs market. For those between jobs, this is often a time when they find they suddenly need credit card help. It can seem to be a way to bridge the gap, yet may simply become too difficult to manage. This can be also sometimes be the pattern for households whose incomes have been reduced for other reasons. Whatever the reasons, the most important thing is to gain independent debt advice, to prevent the debt problems from escalating any further".
Concerns have been raised by expert analysts about the possible effects of an increase in debt on both individual households and high street stores as a barometer of economic recovery. Some argue that demand can only continue to stabilise as a result of increased personal borrowing. This assumption has led some critics to argue the economy is vulnerable to further challenges, with households spending less due to debt.
"Whatever happens in the wider economy, we believe there are definitely going to be a significant number of people who need debt management advice in the near future. For those needing loans, overdrafts, store card or credit card help, there are always legal debt solutions. People often don't realise that they can begin to take control of the situation. For example, if creditors start making persistent demands for repayment, it can feel that things are completely out of control and will never be solved.
For anyone facing debt problems or concerned about their level of debt, our advice is simple. Never feel you are alone in the situation, debt affects people from all walks of life. Speak to an independent debt advisor as soon as you can to start finding the way out of debt for good".
Anyone concerned about any type or size of debt problems can contact the Debt Options team for free, impartial advice on 0800 234 3605 or visit www.debtoptions.co.uk. The team work with all the major legal debt solutions.