Creditors are ‘often sympathetic’
Borrowers who attempt to address their financial problems by entering into an informal debt management plan often owe more than a year's salary, according to figures published yesterday.
Statistics compiled by Chiltern Debt Management showed that people seeking its help with debt problems have accumulated an average of £26,608 in unsecured borrowing, such as loans, credit cards and store cards.
The figure is equivalent to 113 per cent of the average gross annual salary and means that such borrowers are faced with a situation where their monthly credit repayments amount to 69 per cent of their take home pay.
People worried that their debts are spiralling out of control should seek advice as early as possible, advised Chiltern's marketing manager Joanne Gill.
"Creditors are generally seen as the bad guys when a person cannot afford their debts. But our experience is that they treat customers with genuine difficulties sympathetically and positively," she said.
Sean Gardner of personal finance website MoneyExpert.com recently said that consolidation loans and loans secured against property can both be effective ways of bringing debts under control.
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