Whether it is the application for a mortgage, a new car, the cost of further studies or a business start-up, personal debt can severely impact on your goals and prospects as lenders measure up your application. Strategic financial advice when weighing your lending options against your wider commitments can help you reach your long-term aims faster.

Economic Impact

The impact of personal debt on the economy is manifold, but shapes the terms of your loan and wider economic prognoses of the lenders.

With household debt to GDP anticipated to reach 88.50 % by the end of the third quarter (Trading Economics), additional financial stresses for the winter season may negatively impact the turnover of businesses in the fourth quarter.

While government research notes that ‘growth in total debt is still low compared with pre-recession rates’ (Research Briefing, 2018), nonetheless, debt remains at a high level against historic trends. Highlighting a rise of 8.6% of unsecured debt, consumers require a clear perspective of their liabilities and interest rates, in step with their household income.

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Cost of over-indebtedness

The Money Advice Service (MAS) estimates that 8.3 million people in the UK are over-indebted and that 22% of UK adults have less than £100 in savings, making them highly vulnerable to a financial shock such as job loss or large unexpected bills. The National Audit Office (NAO) also reported that:

  • £18 billion estimated minimum value of personal debt is owed to government, utility companies, landlords and housing associations; and,
  • Approximately 5,000 consumer credit lenders are regulated by the Financial Conduct Authority.

Personal debt can hinder your aspirations for individual, and business ventures, and may even restrict your choice of career. Find out what we can do to put you back on track.

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For specialist and bespoke advice about your debt recovery options, contact one of our experts today on 0141 413 9025.