Drivers Falling Into Debt Problems
Statistics show that over 7,000 new debt cases related to debt problems are dealt with by the Citizens Advice Bureau each day, meaning that people in the UK are finding it difficult to manage their debts and essential living costs and thus falling into the trap of debt.
With stagnant incomes and rising living and fuel costs, for some managing their outgoings on top of their debts is a huge task. A survey carried out by the AA has found that drivers in the UK are resorting to payday loans in order to cover their fuel costs, with some resorting to pawning their possessions. The average cost of fuel has risen by a further 3p since June, meaning that drivers already struggling to run their vehicles are even worse off and risking falling into debt.
“Fuel price desperation has created a new and sinister twist to the phrase ‘driven into debt,” said AA president Edmund King.
If you are having a hard time dealing with your debts and are falling behind on repayments, and struggling to pay living costs, such as fuel for your car because you have little disposable income each month, there will be help available to you. The debt solutions available to you will depend on your individual circumstances and the severity of your debts.
It may be that you could benefit from a consolidation loan. The purpose of this type of loan is to pay off your existing unsecured debts, leaving you with an affordable monthly payment each month.
Another solution could be a Debt Management Plan. A debt management advisor will go through your finances and work out how much you can afford to pay each month (after your essential living costs). This amount is then distributed to your creditors.