BOURNEMOUTH, England, July 26, 2012 /PRNewswire/ --
As household debt increases due to the economy continuing to worsen, UK debt management company Debt Line offers a way out for debt-ridden households
According to the Office of Budgetary Responsibility, household debt will increase by more than £20,000 per household over the next five years. The current level of household debt, including mortgages, stands at £55,514; but 2017 this is expected to reach £77,719.
Despite a low Bank of England interest rate, households continue to pay huge levels of interest on loans and mortgages. For example, the UK's annual interest repayments on personal debt in May were £63.1 billion - this works out at £2,399 per household.
Although unsustainable debt is blamed for causing the recession, millions of people still wrack up huge debts every year. One of the worst types of loan is a payday loan. These loans are so dangerous because of their high interest rates - up to 4,000% per annum. Additionally, payday loans have garnered a bad reputation for themselves over the handling of clients' debt queries. Questions are left unanswered, emails left unopened and rudeness awaits at every turn. Thus many consumers taking out payday loans get into difficulty, which soon spirals out of control.
Debt Line offers victims of payday loans an alternative. It doesn't offer loans itself; it is a debt management service offering a personally tailored debt consolidation program to each of its customers. It deals with pushy creditors on behalf of its clients and arranges for interest rates to be frozen or reduced. It creates debt management plans that can be accessed 24/7 in order to help its clients get out of debt as soon as possible and stay debt free in the future.
With household debt predicted to rise over the next five years action taken now could prevent crises in the future. An ageing population and a slow recovery from this now double-dip recession is squeezing households ever tighter, but Debt Line advises consumers against taking out payday loans as a stop gap between pay days.
SOURCE Debt Line