Prices rising whilst wages decline create the worst possible scenario for the average Brit struggling with personal debt.
- The cost of the weekly shop, filling up at a petrol station and simply heating your home seems to be going up and up. Yet, since the start of the credit crunch you have seen your salary cut by 10% and your partner has since lost their job!
Whilst many of us do intend to put money by each month to ensure that we are able to survive in times of difficulty, it is rarely sufficient to cover some of the extremes of economic circumstance that has affected the UK since the back end of 2007.
Indeed it had been almost 20 years since the UK had felt the pressures of inflation and increasing prices leading to declining living standards
First there were salary cuts, your union negotiated a 10% drop in salaries across the board in exchange for no redundancies. Whilst this was tight, it was manageable as you hoped that increases year on year would bring things back to an even keel. Plus back in November 2007, the consumer price index sat at 2.1%, so a little belt tightening wouldn’t be an issue, as long as there was no more bad luck…
And there it is. You could almost predict it! ‘We need to talk’ she said when you got home from work one evening. After a quick mental check (you hadn’t forgotten a birthday, valentines, or an anniversary) revealed it wasn’t your doing you breathed a sigh of relief, only to hear the words ‘I’ve been laid off’.
This time you went back to the drawing board of the family finances and realised that there was no more fat to trim. No expensive gym memberships, the villa holiday in Turkey had been swapped for a week at the in-laws by the seaside, replacing the car had been put back for at least two years and there was no alternative…. ‘How about we use that interest-free credit card hunny?
- We can start paying it back when you get back into work’
Except the job opportunities didn’t come. Not for want of trying mind, dozens and dozens of applications were sent off, many even without a letter confirming receipt of the application.
Fast forward into the start of 2011 and your salary still hasn’t increased, your partner has only been able to secure a part-time job on much reduced wages. The credit card debt borrowing seems to have stretched through the roof (and the minimum payments are killing you). And to cap it all, the latest inflationary figures released by the Bank of England tell you what you already know… it’s getting more and more expensive to live in Britain with each passing week.
- Prices are rising, whilst your wages falling!
So with that massive credit card debt, what comes next, as you start to miss payment after payment and are struggling to cope what can you do?
- Well, help is at hand!
One free call to Lewis Alexander can be start of brighter things for you and your family. Our trained specialists can assess your personal financial circumstances before considering a range of debt solutions that could suit you.
For some clients, a secured loan may be a good option – particularly if you have significant equity in your home and enjoy good job prospects and up-to-date workplace skills. For others a debt management agreement may offer the best solution to the situation. In this particular scenario, there is no reason to assume that your household salary will not increase in the future and your partner may soon secure a better paid job with more hours.
Whatever solution is right for you, our personal debt specialists will work hard to ensure that your creditors understand your personal situation, accept the planned actions you intend to take and stop hassling you with difficult telephone calls, emails and text messages.
- Worried this all sounds a little bit too easy? Please don’t be.
At Lewis Alexander we place client confidentiality alongside providing a professional service as the pillars of our organisation. We also feel it important to explain all the personal debt solutions and options that you have available in such a situation, rather than herd you into the vehicle that provides the greatest return for us.
This is because we believe that word of mouth is our greatest advertiser and we want our clients to be happy with the service we provide.
As the UK continues to exit from a difficult economic position, times are likely to get tougher. Prices are likely to continue to rise, whilst salaries fall.
- At Lewis Alexander we are prepared as best as possible for these tough times and are committed to helping clients through their personal financial difficulties.
- A regular salary and a commitment to a regular repayment is all we ask. So call Lewis Alexander free and in confidence today using 0800 018 6868.
