Warning: Late repayments can cause you serious money problems. For help, go to moneyhelper.org.uk. We are a broker not a lender.
Warning: Late repayments can cause you serious money problems. For help, go to moneyhelper.org.uk. We are a broker not a lender.
Oct 22, 2019
As of September 2018, the National Audit Office (NAO), claims that approximately 8.3 million people in the United Kingdom are not only in debt, but unable to pay off household bills.
The most common types of debt in the UK are credit card and mortgage debt. It is also common for people to get into debt with the following:
According to the Money Charity, the average household debt in the UK is £58,540 and the Office of National Statistics claims that households are spending more than they earn for the first time in more than 30 years. People are saving less and borrowing more. As a result, an increasing number of people are seeking debt advice.
While it is not a good idea to get yourself into more debt, there are going to be times when you have no other choice but to seek out alternative help. When your credit cards are maxed out, and you have reached your overdraft limit, but you still have other expenses to take care of, what is the alternative?
Payday Loans: A payday loan charges a slightly higher interest than your standard lending facility. However, their lending criteria is not based on your credit score but on your ability to pay the money back. As long as you have got a job with a monthly income to cover the cost of the loan, you will get the funds that you need. Before applying for a payday loan, you should seek debt advice.
Short Term Loans: A short-term loan is another option when you are in a tight spot; again, they charge a higher than average interest rate, but your acceptance of a loan is based on your ability to pay back as opposed to your credit rating. You are also eligible for more money than a payday loan and it is paid back over a longer period of time. Before applying for a short-term loan, you should seek debt advice.