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No easy cure for the Christmas financial hangover
Published on: 21 May 2007
'January and February can be a time of great anxiety for many as credit card statements start landing on the doorstep,' said Carl Faulds today. Faulds, of Portland Business & Financial Solutions Ltd in Fareham sees many individuals wrestling with accumulated debt, often compounded by Christmas spending and frequently they're turning to the wrong sources for advice.
With personal insolvencies expected to double in 2007, consumers are too often drawn in by promises of 'low monthly repayments' or 'write off 75% of your debt' 'We have become a nation of borrowers, rather than savers,' said Faulds. 'Increased competition amongst credit card providers has led to massive overspending by those who can least afford it. And when the debt becomes too much to handle, we are too often lured by promises of easy solutions.'
There is no perfect solution for dealing with overwhelming debt. Any consolidated loan or debt management plan offering low monthly repayments usually comes with a higher interest rate and a much higher total repayment amount. 'For the sake of getting debt collectors off your back, you could end up with a 25 year loan and perhaps even lose your home.'
Generally, consolidated loan and debt management companies are only able to offer you their product and may not be able to advise on other options which may be right for you.
A licensed and regulated insolvency practitioner, by contrast, is legally required to explain all of your options and guide you in the right direction, rather than simply sell you a product. As Faulds explains 'If you have combined debts of over £15,000 then don't be seduced by big budget television advertisements, contact a licensed insolvency practitioner for impartial advice. It could save you a lot of time and money.'
Portland offers free consultations to people with over £15,000 in debt. To find out more about how Portland can help you, call 01489 550 440 today.
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