Personal debt continues to grow at an unsustainable level. Latest figures show consumers have collective debts of nearly £1,500bn – more than the gross domestic product of the country.
With debt at such a level the importance of managing it is becoming significant. Research from Credit Action shows that although the UK is officially out of recession indebted Brits still feel financially insecure.
Some even ignore debts as they can’t adhere to repayment commitments. In fact, 19% do not open bills as their debts pile up.
With over one million consumers struggling without seeking help it reinforces how important it is to ensure a broker is on hand to prevent debt problems getting out of control. This allows advisers to offer tailored debt solutions.
The key for consumers is to talk to their advisers as soon as financial difficulties are identified instead of trying to sweep money worries under the carpet.
Debt can be managed in a proactive manner, and vital underlying issues tackled by both parties.
Although individuals may see no way out of their debt an adviser can offer guidance. We regularly hear from indebted individuals who were unaware of the options available until they spoke to an intermediary.
The latest statistics show once more how difficult life is becoming for consumers. As financial services professionals we have an opportunity to respond responsibly and show our value.