Reduced Income Causing Loan Problems
More and more people in the UK are struggling to find suitable work, both on an employed and self employed basis, resulting in a significant drop in their household income, which is in turn leading to problems with keeping up with their personal loan and other debt repayments.
A growing number of individuals are now working on a part time basis, just to try and make ends meet and avoid falling into loan arrears and further loan debt problems, because they are unable to find work on a full time or permanent basis.
People who find themselves in this situation have been advised to take action to sort out their loan debt problems before they build up large levels of loan arrears and defaults, placing them in the position of possible repossession of their home.
There are many debt charities, such as Citizens Advice and the Consumer Credit Counselling Service, which exist to offer help and advice to people struggling with their loans and other debts. Alternatively, there are also many debt management firms who can work out debt management plans for a fee.
Atlantic Financial Management have advised people who are finding it difficult to maintain their loan repayments to seek advice before the situation becomes too bad, as the problem will be much easier to solve.
Kevin Still of Atlantic Financial Management had this advice for those who are struggling “Prioritising payments is absolutely key and meeting mortgage and home owner loan payments must be the first priority ahead of any unsecured loan or card debts. Priority debts such as mortgage, secured loans, rent, council tax and utility bills must all be top of the list when push comes to shove.”
