Wipe the slate clean
A record numbers of Britons are appealing for help with their massive money problems.
New figures from Citizens Advice Bureau show that debt enquiries have hit a record high - 1.7 million people turned to the charity for debt help in the past 12 months, an increase of 20 per cent.
The number of debt problems taken to the charity has doubled since 1997.
Debt is now the number one issue for CAB, accounting for a third of all enquiries. Its advisers around the country are dealing with an average 6,600 such problems each day.
It's clear there is no easing of the number of people suffering as the cost of living continues to climb, making mortgages, council tax and gas and electricity more expensive for many. But the figures also demonstrate that more people than ever are prepared to seek help with their debt worries.
One solution is to arrange a consolidation loan, putting all your debts into one place, making monthly payments simpler.
By doing so, it can be a positive step to getting control of finances, rather than letting them control you. But the danger is the temptation to start spending again.
If you keep your plastic cards while trying to pay off debts, the chances are you will use them again. And that could be the first step back on to the spiral of debt problems and worries.
Instead, cut up your credit cards. Then, just as importantly, work out a proper budget so you know how much you can afford to spend each week, and cut back on luxuries.
Research by Chiltern Debt Management found that the average person who arranges an informal debt management plan will take 145 months to be free of their debt.
Chiltern says that by the time the average debtor seeks help they have built up unsecured debts equal to 113 per cent of their gross yearly income, which will take more than 12 years to repay at an affordable level.
Source: mirror.co.uk
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