Interest Payments On Debt Harassing Families
Since the share of disposable income of the families segregated every month for interestpayments has reached a major level, the families find themselves in a much tightened situation in terms of managing their expenses. In a recent report released by debt charity the CCCS (Consumer Credit Counseling Service), the chairman Lord Stevenson has strictly warned the families to control and stabilize their interest payments as the interest payment burden has reached an average of almost 200 per month for the last three months of 2011.
According to another report released by the Consumer Debt and Money, the percentage of disposable income on interest payment has increased by 0.1 percent compared to the previous quarter as the living costs surpassed wage increases. According to the charity's report, the percentage of counseling demand from the group of old professionals aged between 45 and 59 increasingly affected by interest payments and debt problems has increased from 22.8 percent in 2005 to 31.7 percent by the end of 2011. The report also reflected sufferings caused by the financial crisis and predicted that the demand for debt counseling will reach its peak by 2014.
Due to high inflation, increasing utilities and living costs as well as deteriorating employment conditions, the major part of disposable income of the families is spent in meeting their expenses, which is why, the interest and determination of UK household to pay the interest amount has slowed down by and large.
The report has also emphasized on the major threat to the solvency of many families may cause due to payments made necessarily regardless of economic circumstances since the interest payments are increasingly becoming heavy burden. Since the economic downturn is causing the household heads to lose their jobs, at the same time the rise in property prices and mortgage debt from around 20,000 per household in the early 2000s to more than 47,000 by December 2011, the interest payments has been aggravating the harassment of the families in the UK. Need cash at low interest apply at 12 months bad credit loans and get funds with easy repayment options?
Although the last two years have shown some relief but the increasing disposable income spent on servicing debts is piling on and causing financial crisis in households. In 2005, due to increasing trouble of the families, the property repossession increased. Similarly since the end of the year 2009, the stable share of discretionary income on interest payments is predicted to remain same. CCCS chairman Lord Stevenson expressed his concerned over the high demand of counseling in London and the North West; rising demand for counseling in Wales and Yorkshire and the neighboring areas.
by: J Grayn