Debt Consolidation – Soaring Living Costs

Dreaming of winning the lottery or getting a massive salary hike won’t fix the reality of day-to-day debt, but debt consolidation and an IVA with trusted companies like Fresh Start UK could.

If you’re relying on winning the lottery to get you out of massive debt, don’t hold your breath. But the brain can be self-deceitful; burying your head in the sand hoping for an unlikely windfall might be more palatable than facing up to harsh realities. Debt consolidation however can be an easy step to take if you turn to the debt management experts.

Debt consolidation – Facing up to the financial facts

The soaring cost of living is impacting on more families and households in the UK. For the first time in decades, the UK economy is making itself known – and not in a good way. Debt consolidation will become a necessity for more of us as new figures reveal just how high the cost of living now is; it will cost you on average £41 a day before you’ve even got out of bed! Why? Spiralling utility bills are partly to blame as gas and electricity companies have increased their charges, council tax bills have also risen and general household repayments, including mortgages, have pushed the cost of living for homeowners to an all time high.

Outgoings outstrip income

Newspapers across the UK have reported on the revealing Citizens Advice study that shows the average household now pays £14,800 in bills every year, a massive £6,000 more than five years ago. It doesn’t take much then to land in unmanageable debt – a holiday, car maintenance, a wedding, or just day-to-day living costs. Debt consolidation it seems will become in increasing preoccupation for more homeowners as 2008 ticks by.

Affordability gap leads to debt consolidation demand

Essentials such as gas, electric, water, phones, home insurance and TV licences now all add up to an average £3,426, with the annual cost of a mortgage costing £12,000. For those who over-stretched themselves or over-borrowed to buy their homes, debt consolidation may become a necessity as part of a debt management strategy to keep financially afloat – while still holding on to their homes. The figures also impact on those sectors and locations where wages have not risen to meet the rising cost of living. It’s this affordability gap that lands many homeowners in financial difficulties – even if they have a beautiful home and earn an average or more-than-average salary.

It can feel simply impossible to balance your income with your outgoings, especially if you are already in expensive or spiralling debt. Debt consolidation and debt management plans could provide a way-out for those fearful that they are facing financial ruin.