The UK press is overwhelmed with reports of Britain racking up debt on credit cards and personal loans. During this spending crisis people are struggling to pay for essentials, so are ‘stress borrowing’ with unsecure borrowers. Stress borrowing is where people panic and borrow as soon as possible, not taking time to research where they are borrowing from. Some of the key facts are as followed:
- An increase of £629m borrowed on cards & loans in September compared to £478m in August. Boosting the total borrowings to £1.5trillion.
- Borrowing on cards & loans has been increasing over the last 7 months as households struggle to make ends meet.
- Borrowing on cards & loans is increasing at double the rate of mortgage lending, suggesting that people are turning to credit to get through the month.
- Almost a third (28 per cent) of UK adults spend more money each month than they have coming in.
- Loan companies take advantage of the venerable public.
Stressed borrowing can result in depression.
Depression affects around 1 in 5 people in the UK. With money troubles being a huge part of day to day life, it is easy to see how people get trapped in this dreadfulcircle, involving endless anxiety, sleepless nights and stress. The best thing to do is to face up to the reality of the situation, and ask for help. Borrowing on cards and loans to get you to your next pay day can equate to things spiralling out of control.
What to do?
Once you have discovered the problem, it is time to act on it. There are many official website and helplines such as http://www.citizensadvice.org.uk/ which is the UK citizens advice bureau, to help you through such troubling times. This service will offer you advice and guidance to help get your finances back on track.
With the state current downturn of the UK economy stress borrowing is becoming normality in the UK household. With rising costs of living and record unemployment rates many of us are turning to credit cards or loans to pay for everyday things.