Mar
7
07/03/2008
Living with debt has become an unavoidable fact of life in 21st Century Britain. The high cost of living, coupled with easy credit and spiralling housing prices has created a situation whereby it seems almost impossible to function economically without having to manage debt.
In some respects, this is an unavoidable situation. For example, housing prices mean it is only the privileged minority who are able to do without a mortgage. The danger comes when debt piles up from a number of different sources and spirals out of control. The advent of low or no deposit mortgages has only added to the pressures on a buckling system. Ubiquitous television adverts, purporting credit for those already in difficulties as a means to escape their problems contributes to a never ending debt spiral.
2006 saw a 59% rise in insolvencies and the current debt is estimated at £1.4 trillion. New legislation brought in 2004 relaxed the rules regarding bankruptcy and for many it is now seen as a viable option to getting out of debt. Similar legislation was introduced in America during the 90’s and is seen as a contributing factor to its current economic slump.
Property Rescue can offer a viable alternative to bankruptcy. In addition to purchasing your home for cash, they are able to eliminate up to 80% of unsecured debt without using any of the proceeds. Property Rescue negotiate a vastly reduced sum on your behalf with the credit card or loan companies. This immediately releases some of the pressures on your finances. Between 9-24 months later they will negotiate a small one off payment to release you from the outstanding debt. This is usually a small percentage of the total owed.
Before any decision are made, it is prudent to contact your local Citizens Advice Bureau. In addition to this the Consumer Credit Counselling Service offer free advice to anyone in financial strife. Bankruptcy should still be the last resort in dealing with debt as there are usually ways of combating the situation without resorting to insolvency.