New figures, released this week, have revealed the full extent of the country’s debt worries, as the recession’s impact shows wide spread damage across the financial board.
The total personal debt reached £1,457 billion by the end of August this year, but the twelve-month growth rate continued to decline by 0.1% to 0.8% in total.
Lending continues to feel the pinch, rising just £0.7 billion in the past year, while consumer credit lending fell by a net £0.3 billion. In contrast, total lending in January last year grew by £8.4 billion.
Average household debt now sits at £58,290, including mortgages, but is expected to rise to £116,130 when taking into account the 2009 budget for public sector net debt (PSND). But the average house price has fallen by 9.1% to £143,454.
Young workers and borrowers, affectionately labelled the IPOD Generation, took a severe hit in the past year. Unemployment for 18 to 24-year-olds sits at 17.5%, as 731,000 youths now find themselves out of work.
Andrew Leakey, managing partner of consumer law at Stephensons Solicitors LLP, said: “While the recession is now said to be waning, the recovery will take far longer for the millions of people who are suffering from debt affliction.
“But while debt problems might seem like an impossible situation to overcome, even the most complicated debt issues can be unravelled, with the right help, to secure a positive outcome.”
Stephensons’ consumer team is one of the leading specialists in the country in dealing with debt problems on behalf of clients.
The firm has developed a website, www.debtandrepossession.co.uk, where people can obtain free initial help. Stephensons also offers a free 30-minute consultation to check through credit agreements and assess the potential of challenging them. There are various funding options open to people, including legal aid and conditional fee arrangements, also known as no-win, no-fee.
For more information on this, contact Andrew and his team through www.debtandrepossession.co.uk or call the free helpline on 0800 694 0189.
