I’ve been sent an article about personal debt problems. The UK’s economy has begun to show signs of recovery, unemployment is gradually beginning to fall and there are positive indications that firms large and small are beginning to recruit new staff again after years of stagnation in the job market . Also, house prices are beginning to rise again, which is handy for many homeowners, but does the good news stop there? The guys at Payplan suggest that for many still feeling the effects of the economic downturn which began in 2007, this is the case. They say that despite the appearance of the odd green shoot of recovery, employment prospects for many are still bleak, while high inflation has helped to send the cost of living through the roof. Wage growth is anaemic at best too, which for many has had dire consequences in terms of personal debt. Their article says;
Scaling the debt mountain
Debt is accrued in a number of ways, but given the current climate, more and more people have been taking out loans to try and plug a short-term gap in their personal finances. Payday loans in particular have been viewed as the answer for anyone looking for the means to meet the cost of their next weekly shop or utility bill, but high interest payments inevitably add to their debt levels.
As proof of how big a problem personal debt is in the UK, this debt Map from Payplan reveals that people across the country have been left with little option but to seek help in trying to arrange repayment despite not being able to meet it themselves. Even in supposedly affluent regions such as South East England, people are struggling to repay what they owe to creditors.
While the economic picture is a little brighter than it was as recently as last year, it might take time for the personal debt problem to fade away.
Having looked on their site I created the above “debt map”; which makes for incredibly depressing viewing as thousands (or even millions as they suggest) of people in the UK are left to cope with the burden that having thousands of pounds worth of debt can be.
