More than two thirds of those aged between 18-34 admit they would not be able to survive without a regular salary, due to lack of savings. (Source: Insolvency Today)
Without an established career or savings security, they have the most to lose if they found themselves out of work. Plus, with increasing amounts of companies falling into debt having to make staff redundant, it is unfortunately becoming a regular occurrence.
Many households find that after all their necessary expenditure such as household bills, car insurance, credit card debts & fuel costs are becoming a huge strain in maintaining.
This is pushing more and more people to become saddened as they cannot take their kids out, go on holiday or have a happy lifestyle.
Consequently, your household should review income and expenditure regularly. This is to determine if you’re regularly going to be in debt after you have paid your bills or not. Should your expenditure be higher than your income each month, then it’s time to seek expert help.
However, the wrong way to tackle this issue is to borrow more money. Short term credit, like pay day loans, have huge interest rates but they’re becoming increasingly popular for the wrong reasons. Pay Day lenders are forcing an immense number of people into debt and worry.
This is the start of a debt trap; you take out the loan and pay back on your payday, leaving you with less money for the next month.
If personal debt is the issue then perhaps an IVA (Individual Voluntary Arrangement) would be the answer. With an IVA, we can negotiate with your lenders and consolidate all your debts into one affordable monthly contribution.
Or if you have a company and find cash flow issues occurring, a CVA (Company Voluntary Arrangement) may benefit you to consolidate company outgoings into one affordable contribution. This allows you to carry on trading and work around your debt to bottom your cash flow issues.