Debt struggles are real for adults. The Financial Conduct Authority’s (FCA) reports suggest that one in ten adults in the UK suffers from serious financial difficulty. Reports aside, most people know someone who is struggling financially, be it due to mortgage payments, student debt, or credit card bills. Debt always starts small with something as little as a credit card bill payment that rolls over month on month. Small payment defaults lead to interest triggers that increase the ultimate payment figures, doubling and beyond, which become unpayable over time. This is the truth for many adults across the world, including the UK.
There are countless stories of people going into debt, with no fault of their own, especially after the pandemic that hit in 2020. Many people lost their jobs and were in a condition where they were unable to support themselves. Lisa, a social worker living in Bradford, faced a debt of over 10,000 pounds on her two credit cards after the pandemic. Even after emptying her savings, the interest payments led to her not being able to pay off her debt entirely. It exists even today, and she’s barely able to sustain herself with her debt, considering a majority of her paycheck goes into paying off her debt.
In a different scenario, Matt, an IT professional, lost his job after the pandemic. With minimal savings, he went on a job hunt while having a mortgage already to his name. The job hunt didn’t go well, and he had to rely on his credit cards to pay off mortgage payments for a while till he landed a job. The credit card bill, combined with his mortgage payments today, makes up for almost all of his paycheck, leaving him to survive on practically no money, even after having a decent job.
These stories may sound grim, but there’s hope out there. If you feel like you’re drowning in debt, there’s a methodical way to manage debt with support and help from Moneyplus Advice. One of the best ways to strategically tackle debt is with a Debt Management Plan (DMP). In this process, you work with our advisors at Moneyplus Advice, who help you consolidate multiple debts into a single affordable monthly payment. In fact, the benefits of opting for a DMP go beyond just the consolidation of debt. It also eliminates the constant contact that one has to have with creditors and the constant pressure it builds.
