Those Struggling With Debt Should Consult Professionals
February 26th, 2010 | 
Author: Those Struggling With Debt Should Consult Professionals
nbsp;
Moves to improve financial education and help more lowincome consumers access competitivelypriced loans and other forms of borrowing have been welcomed by one industry body.
According to R3 the Association of Business Recovery Professionals the trade body representing insolvency practitioners the recently announced government scheme could help borrowers avoid unscrupulous loan sharks who charge borrowers high rates of interest. As a result of being guided away from such providers it is possible that consumers could adopt a more responsible attitude towards handling their money and be able to successfully search for a lowcost loan.
Nick OReilly vicepresident for R3 claimed that those Britons who are struggling to handle various demands on their spending such as mortgages utility bills and secured loans should avoid loan sharks and instead seek advice on their debts from reputable professionals.
He said: Loan sharks take advantage of those who are at their most vulnerable. In most cases when an individual approaches a loan shark they see it as their only way out of trouble but unfortunately dealing with loan sharks can only lead to more problems. The advice from the professionals is to consult an expert as soon as you see problems arising. They can advise on the best course of action without resorting to illegal loans sharks.;
In addition the association pointed to statistics from its most recent debt index carried out in August which showed that only just over a third 38 per cent of people who claim that their finances are causing them great difficulties; have looked to get professional advice. Meanwhile 12 per cent of those concerned about their money management have gone on to borrow cash again via loans which in many cases; has seen them resort to loan sharks.
Findings from the R3 index also indicated that one in five see their debts as currently being out of control;. As a result 19 per cent of those struggling to handle their finances have taken out a debt consolidation loan with 28 per cent selling items as a means of raising extra cash. People on lower incomes are revealed to have higher proportions of debt as those earning 21540 pounds are some 8831 pounds in the red via nonmortgage borrowing. This compares to the 8995 pounds of arrears consumers on an annual salary of 37480 pounds are on.
Overall the West Midlands has the highest proportion of overall debt in comparison to Scotland which has the least. Women are also suggested to be the most astute in handling their money as despite earning less than their male counterparts they have lower levels of both mortgage and nonmortgage debt.
Earlier this month the Association of British Credit Unions revealed it is set to discuss the countrys money management difficulties being held at all three of the major political party conferences. The meetings are to discuss how to help financiallyexcluded members of society access competitivelypriced lending options such as lowrate loans. In addition the gatherings are to discuss the provision of borrowing for instance of adverse credit loans for the rising numbers who find themselves with a damaged financial history.
UK Loan Arrangers providing you with breaking bad credit loans news.
About the writer: Alex Braun is a skilled internet marketer who has been creating wealth from his home based business for several years. He would like to share his experiences with people in his website Global Resorts Network. He will also make you understand why the grass is greener on the other side when compared to ours and how YOU can get there too!
Related posts:
Posted in Finance