It has recently been reported in the media that the Charity behind the ‘drop the debt campaign’ to help developing countries has called for the UK government to write off as much as £40 billion of increasing consumer debt.
The Jubilee Debt Campaign is initiating a campaign to cancel the debts of struggling Consumers in one of the first-ever drives in an advanced economy. The move comes as household borrowing returns to the same levels witnessed during the dark days of the financial crisis of 2008.
Recent statistics published have highlighted that personal borrowing on credit cards, loans and overdrafts in the UK has reached £239bn. This is a startling statistic and very worrying as a rise in interest rates is also expected this year. The Campaign aims to focus on unjust debt, which the Charity defines as borrowing causing harm because it traps people in debt, causes material deprivation or is exploitative in nature.
This move is focused on helping those poorest individuals and it will call on creditors to modify their existing agreements to reduce the level of repayments and charges to a maximum of 30% of a person’s income. Some of the cost would be borne by the lenders to penalise irresponsible and exploitative lending practices”. However, the aim is that the UK Government would also shoulder some of the burden, possibly through instructing the banks to use its quantitative easing scheme to finance write-offs.
This is promising news which gives us, at GDP Equity Experts, hope that lenders will now start to be held to account on a more regular basis for irresponsible lending. The hope is that going forward this will also prevent the same old methods and mistakes from occurring which should lead to a relative escape from the financial nightmare that we have experienced over the last 10 years.
We are hoping that other measures may well be put in place to prevent a reoccurrence of this nightmare such as a cap on the cost of credit. This would force lenders to write off amounts owed where a borrower has already repaid 100% of their borrowing in interest and charges.
At present, unfortunately these are only aims and ideas that could come into fruition in the future. Therefore, it is important that you act now and undertake a full financial review of your finances if you are struggling with debt.
What should I do?
If you are finding it difficult to manage an ever increasing level of debt and household outgoings, spend some time today, tonight or this weekend working out how tight things are going to be over the weeks and months ahead. Knowing what cash you have to spare can help you start to put a little extra aside to repay debt commitments in a shorter period of time.
If you have expensive forms of credit and you’re not paying them off during free deals, then don’t use them anymore and pay off these debts as soon as you can.
If household finances are over extended then downsize your spending while you can in case you are faced with essential emergency household expenditure.
With a mortgage payment, it is imperative that you check your mortgage paperwork to determine and understand your mortgage agreements and make financial plans now for potential mortgage rate increases. It is REALLY IMPORTANT that you have a full understanding of what kind of mortgage product you have committed yourself to.
ASK FOR HELP – Try not to wait any longer if you have a financial issue or are concerned about any of the matters mentioned in this piece, simply ASK FOR HELP NOW.
What we can do to help?
Since 2010, GDP Equity Experts have helped hundreds of families deal with debt related issues. We have been leading the way in this specific matter over the last few years and have particular expertise in helping people deal with crippling debt related issues.
We would like the opportunity to share this with you. As a result, our team are more than ready to engage and assist if you have been affected by this or you have any other property debt related issues.
GDP Equity Experts know what is expected and how to get you to where you want to go. We WANT to hear from you today because we WANT to help you today.
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