Many Borrowers Not Asking For Help With Bad Loan Debts
The effects of the credit crunch and recent recession have had a severe impact on many individual’s personal financial situation over the course of the past couple of years and even though the UK is now officially out of recession, many borrowers are still struggling to keep up with their personal loan repayments and other debts.
There are a large number of government funded organisations, companies and charities which are set up specifically to help those people who are finding it difficult to maintain their personal loan and credit card repayments and although many of these institutions offer a completely free help and advice service, many people with unmanageable loan debts are still not asking for the help which is on offer.
The news comes from the debt charity Credit Action, which has estimated that there may be somewhere in the region of one million individuals in the UK who are unable to manage their finances and maintain their loan and credit card repayments, yet have not sought any form of professional help or advice.
There is already a high level of insolvency cases in the UK and the concern is that if many of these borrowers do not get the help they obviously need, the number of insolvencies and bankruptcy cases could increase dramatically.
The charity also warned that many people who are unable to obtain a personal loan through normal channels, are turning to high interest rate credit cards or doorstep loan companies for their borrowing needs, which is likely to make the situation even worse.
One spokesman for the charity said “Anyone that is struggling with their debt needs to seek advice sooner rather than later. If they fail to do this they could quickly find their debt spiralling out of control and this could lead to severe problems and ruin their financial future.”
