Debt misery for middle England ~ Debt Managements and Consolidation

With news of Scottish Power increasing its gas charges by 19% and electric by 10% along with the fastest rise in food prices in two years*, households already under the strain of poor wage inflation, are facing the prospect of their cost of living rise even further, by hundreds of pounds in the year head. Debt solutions expert Atlantic Financial Management is warning that middle income families who may have overstretched themselves and are already facing debt problems could plunge deeper into the red as they struggle to make ends meet.

Atlantic Director, Kevin Still said: “The move by Scottish Power is almost certainly going to be followed by price rises from the other energy suppliers. The timing really couldn’t have been worse given the rise in living costs for food and fuel in the past 12 months and falling house prices in some parts of the UK. If interest rates rise, as anticipated I fear we could see a whole new group of middle income consumers falling into a debt spiral, using one credit card to pay off another, in the hope that they will be able to keep their head above water. All the time, the interest will be accumulating and the total debt increasing.

“When a family has done everything they can to save costs, including switching to a fixed energy tariff, and outgoings continue to swallow up income, it’s time to start prioritising which debt to pay first. A debt management plan (DMP) can really help in this process, enabling householders to get their finances back on track.”

A Debt Management Plan from a DEMSA accredited debt solutions company such as Atlantic will work out which payments are prioritised and which can be negotiated. Priority debts, such as mortgage, secured loans, rent, council tax and utility bills must be paid first and Atlantic makes allowances for these in the client’s monthly budget and statement of affairs. Atlantic also negotiates a debt repayment plan for unsecured debts which are paid once the priority debts have been settled each month.

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