Losing Sleep over Bedroom Tax – In Debt?

On September 19, 2013, in News, by Lewis Alexander
  • Paying the new Government Bedroom Tax?credit report UK from Experian
  • Are you finding you have less money spare each month due to the new Bedroom Tax?
  • Would you benefit from the advice and help of a trained personal debt consultant?

Many people around the UK are currently experiencing a reduction in disposable income due to the new bedroom tax imposed by the UK government.

This bedroom tax is being blamed for making many people fall into the cycle of personal debt due to them having less money spare to pay for normal monthly living costs.

If you then take into account that each individual affected by the bedroom tax more than likely has a few credit cards, store cards or catalogue accounts then you will see how the arrears can and are starting to build up.

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Lewis Alexander undertook market research (June 2013) into the expected level of rent arrears that the new bedroom tax would create. Many property landlords expected and accounted for an approximate 10% default rate on monthly rentals, leading to accumulated arrears. Lewis Alexander believed this would be closer to 40% at the time the survey was conducted.

  • Well, if you read the news today both we and the landlords were wrong!
  • The figure is closer to 50% partially defaulting on monthly rentals.

A big worry is that people are actually prioritising credit card, overdraft and loan repayments over these rental arrears and the problem we think will only grow.

If you are struggling with personal debt problems and have been affected by the new bedroom tax, contact our personal debt helpline today in absolute confidence.

  • Call FREE from a UK land line – 0800 018 6868
  • Lines are open 24 hours / 7 days
  • Calls from mobiles may be less expensive if you dial 0161 872 3383
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