News: Domestic debt crisis on the increase says Rotherham expert
Leading Rotherham insolvency expert Paul Moorhead, of Moorhead Savage, says he has seen an increase in the number of families seeking help on debt issues.
Based in RiDO's Moorgate Crofts business centre, Moorhead Savage provide high quality, professional, impartial and ethical help and debt advice to both companies and individuals.
A recent survey carried out for leading insolvency trade association R3 revealed that 50 per cent of people who have concerns about debt believe that the failure of wages to keep pace with rising household bills is responsible for pushing them into debt.
In contrast, only 20 per cent blamed unemployment and 12 per cent said that a relationship breakdown had led to financial problems.
Paul, who has a PhD in insolvency law, said: "This research has highlighted the worrying phenomenon of people simply drifting into debt, with no major life events or sudden catastrophes causing the problem.
"We have seen big rises in food and fuel prices in recent months but for many, incomes have stayed the same or even gone down. This puts real pressure on household budgets and many families will be forced to tighten their belts even further.
"I have been approached by many people who have struggled to feed their families whilst trying to deal with mounting debts.
"Credit that was affordable in the good times can become a real burden when there is less money to go around."
Paul insists, though, that there are solutions available for families who decide to act instead of simply hoping the problem will go away with a turn in the economic tide.
"The good news is that there is no need to struggle with unaffordable credit card bills and other credit," he said.
"If your budget won't stretch as far as it should, there are things that can be done to reduce the cost of debt repayments so families can prioritise payments to essential expenses like housing costs, heating bills and food."
Paul adds that the figures also showed some cause for optimism, as more people believe that their financial situation will improve rather than worsen in the next six months.
"When I talk to my clients, they often say that they are resigned to the economy remaining in the doldrums for many years to come, but it appears that an increasing number of people are becoming more confident that things will start to improve in 2013,” he said. “This has to be good news for everyone."
Moorhead Savage website
Images: Moorhead Savage
Based in RiDO's Moorgate Crofts business centre, Moorhead Savage provide high quality, professional, impartial and ethical help and debt advice to both companies and individuals.
A recent survey carried out for leading insolvency trade association R3 revealed that 50 per cent of people who have concerns about debt believe that the failure of wages to keep pace with rising household bills is responsible for pushing them into debt.
In contrast, only 20 per cent blamed unemployment and 12 per cent said that a relationship breakdown had led to financial problems.
Paul, who has a PhD in insolvency law, said: "This research has highlighted the worrying phenomenon of people simply drifting into debt, with no major life events or sudden catastrophes causing the problem.
"We have seen big rises in food and fuel prices in recent months but for many, incomes have stayed the same or even gone down. This puts real pressure on household budgets and many families will be forced to tighten their belts even further.
"I have been approached by many people who have struggled to feed their families whilst trying to deal with mounting debts.
"Credit that was affordable in the good times can become a real burden when there is less money to go around."
Paul insists, though, that there are solutions available for families who decide to act instead of simply hoping the problem will go away with a turn in the economic tide.
"The good news is that there is no need to struggle with unaffordable credit card bills and other credit," he said.
"If your budget won't stretch as far as it should, there are things that can be done to reduce the cost of debt repayments so families can prioritise payments to essential expenses like housing costs, heating bills and food."
Paul adds that the figures also showed some cause for optimism, as more people believe that their financial situation will improve rather than worsen in the next six months.
"When I talk to my clients, they often say that they are resigned to the economy remaining in the doldrums for many years to come, but it appears that an increasing number of people are becoming more confident that things will start to improve in 2013,” he said. “This has to be good news for everyone."
Moorhead Savage website
Images: Moorhead Savage
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