People on low income in trouble

The recent recession and grim financial climate in the UK have pushed many people over the edge, with soaring costs and decreasing wages leaving many with the only option to use credit cards and loans.

Nevertheless, a new report has shown that it is people with a low income that are most likely to learn harsh financial lessons and be forced to resort to taking out personal loans and get into credit card debt to cover everyday costs of living.

The Consumer Credit Counselling Service (CCCS) have announced the news about a significant increase in the numbers of individuals in search of debt counseling services.

The CCCS informs that those whose wages are low are most likely to accumulate loan and credit card debt and fail to handle it than people whose income is higher.

The average individual who asks for help of the CCCS, with the annual income of less than £13,500, generally has personal  loan and credit card  debts that amount to 120% of their annual income.

In addition, the CCCS discovered that a great percentage of individuals whose annual income is £13,500- £25,000 cannot manage their regular payments on loans and credit cards.

Since it is highly unlikely that the financial situation in the UK will be mended soon, an increasing number of people can get into the same cul-de-sac with their loans and card debts in the nearest future.

A spokesperson for the CCCS said that the recent data suggests that many UK residents are going to face hard times. In all probability, the debt problem will be of greater scale and many more individuals will be in financial trouble than it was previously assumed.
 


Articles

The cultural transformations that have made people accept life in debt have had a direct impact on the approach youngsters take to money matters, which could lead to negative consequences in the long run as many of the next generation would resort to IVAs to cope with serious financial issues.

When we put efforts into our work and get paid for this, we get an amazing feeling of satisfaction. Our hard hard work seems to have been remunerated financially. We go shopping and buy the items we need and the items we simply want.