Your debt management company will create a rosy environment for you and blurt out some very good advantages of adopting their debt management plan. However, there are various disadvantages as well, which they don’t reveal.
Similar to such aspects, they don’t reveal the macro picture. Hence, the UK debt counsel collected information from debt management companies in UK, which can be quite surprising to an ordinary man.
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At the end of July 2009, the total personal debt of UK accumulated to be £1,457bn. |
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Since last couple of years, 1 person in every 4 minutes declares bankruptcy. However, it is expected that this number will tumble down with global finances catching momentum. |
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The average debt per house in UK sums up to £9,226. This amount doesn’t exclude mortgages, as debt management companies in UK don’t cover house loans. |
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An average UK citizen pays around £2,637 every year as interest on debts. |
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In the period 01st January 2009 to 31st July 2009, around 3,600 credit applications were turned down each day. And this number is gradually increasing. |
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Credit card has turned out to be the top culprit of this situation. The average interest rate charged by credit card providers is 18%. The base rate is 0.5%. That means the current rates are 17.5% above the base rate. |
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Most of the clients of debt management companies in UK are fed up with their credit card debts. The study shows that the total credit card debt of UK in July 2009 was £54 billion. However, the total credit limit of credit cards in UK sums up to £158 billion. This means every person in UK has a credit limit of around £5,129. |
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According to debt management companies in UK, one in every 7 people in UK buried under serious debt doesn’t talk to anyone about it. And around 25% of people under debts take approximately a year to disclose their condition. |
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The loss incurred by UK between July 2007 and May 2009 was around £36,000 per grown-up. This is quite surprising. |
Though this information revealed by debt management companies in UK may not help you to repay your debts, it will definitely help you to understand that most of the personal crisis situation is a result of macro economics.
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