Debt Management Blog

A report suggests that women are accruing larger amount of debts due to the greater sense of independence they are feeling at present.

According to Mark Sands, the national head of bankruptcy at RSM Tenon many women in the UK are taking huge amount of loans to ensure that they are equal partners in sharing financial responsibilities. In his words, “Women are taking on more debts because they are more independent now than they might have been a generation ago” further adding that “Perhaps we have seen that feeding through into the level of debt,” he went on to say.

Debt advisors suggest that those who are particularly struggling with debt problems can opt for IVA (Individual Voluntary Arrangement), Debt Relief Orders and other debt management plans to deal with their financial burden.

A study by uSwitch also shows that over all the level of debt in the UK is witnessing a substantial increase and that many house owners are considering taking loans to meet their mortgage payments.

However, with that said, credit is not something that is now easily available to the people. A lot of people are losing jobs and times are still tough. The cuts in public spendings are further adding to the insecurities.

The outcome of this is that in the fairly weak financial climate people are now dipping into their savings to pay off their debts. However, this is not proving to be enough and so women too are trying to shoulder the financial burden and thereby accruing larger amount of debt.

Figures published by the Bank of England revealed that September 2010 saw an increase of £400 million in total net lending to individuals.

It is advisable for those in debt to seek immediate debt advice. While this may not sound a viable option to those who are already under a financial strain, it is important to note that most debt management companies in the UK offer initial debt advice for free.

The initial debt advice is generic in nature in that the debt advisors will study your financial situation and then advise the various debt solutions that you can opt for. The debt solutions vary depending on the level of debt. If the debt is small, informal debt management plans may be the answer. On the other hand, if the debt is huge, for example, more than £15,000, a structured and legally binding debt solution such as an IVA (Individual Voluntary Arrangement) may prove to be the ideal way out. In extreme cases, you can opt for bankruptcy.

As already stated, the right debt solution would depend on your individual circumstances and so if you are in debt, it is advisable to seek debt advice at the earliest.