As posted previously, the budget has bought little good news for anyone and the majority of people are going to need to tighten their belts to avoid getting into debt problems in the future. Amongst the headline grabbing moves such as raising VAT there are a number of other measures which have an impact on sections of society.

One of these is the future sale of the student debt book. At present the interest on student loans is subsidised by the government, costing up to £16 billion per year. The sale of this debt book could well mean an increase in student loan repayments, leaving students even further in debt.

Currently students taking a loan from the official provider, The Student Loans Company, do not have to make repayments until they are in full time work. At this point repayments are deducted at source until the full loan amount, plus interest, has been paid.

The Student Loans Company lent over £5 billion last year, and could be attractive to a number of financial institutions. However the timing of the sale has been questioned as it may not achieve the price it could in today’s depressed market conditions.

Categories: Debt, Economy

With the Chancellor due to announce his emergency budget measures tomorrow aimed at reducing the UK’s deficit, it is unlikely any of us are going to be feeling better about our household finances in the near future. The possible increase in VAT to 20% will hit everyone, particularly the poorer members of society, leading to an increase in debt problems.

For those already struggling and with things about to get worse now is the time to get some debt advice and get your finances under control, if at all possible. Don’t put it off, debt left unchecked will increase and your problems will become worse.

If your debts are relatively small and you have money coming in it is possible that you can sort out your problems on your own. Identify where all of your money is going each month and see if there is any area in which savings could be made or spending can be curtailed completely. Hopefully any measures you need to take now will be short term, dealing with your small outstanding debt and getting your finances on the straight and narrow.

If you are unable to see where savings could be made or your income is not enough to cover your basic living expenses then help is at hand. Similarly if your debts are much larger and you have gone beyond the point at which they are manageable IVA Debt Problem can give you advice and propose actions you can take to resolve your problems.

Larger debts will require more long term solutions and these can be painful and restrictive. However at the end of the tunnel is some light, and you could become debt free in the future, getting your life back on track. Now is the time to act, we face a prolonged period of austerity dealing with the budget deficit and the Chancellor is unlikely to be giving you any gifts tomorrow.

Get in touch with us for a free no obligation debt review and see how we could help you. Or use our debt calculator (above) for a quick search of your options.

Categories: Debt, Economy