Unless you've been holidaying on Jupiter for the past month, you'll know that the UK is experiencing a property slump. The much-publicised housing crisis is part of the cause and effect of the American sub-prime market that so spectacularly collapsed in 2007 sending with it major tremors throughout the global economy. Debt management used to involve property – our homes were our financial nest eggs, allowing us to accumulate wealth that would give us a psychological buffer when it came to our finances. But now economists are advising we don't rely on our properties when it comes to debt management.

Debt management – property, not the solution

The Personal Finance Research Centre has discovered that there has been a generational shift in attitudes when it comes to debt, with more young people relying on borrowing to pay for their every day living costs. The report also said that attitudes to borrowing, debt and property needed to shift drastically saying that relying on the price of your property to rise or hoping your property will solve your debt problems is "financial suicide".

Property hopes – "financial suicide"

Those homeowners who are counting on their properties to solve their debt problems as their prime debt management strategy are at risk of insolvency or bankruptcy. Even more so, those who over borrowed to get on the property ladder, leaving them vulnerable to fluctuations in interest rates. Pinning our hopes on property is something that more of us are realising is foolhardy as prices have plummeted across the housing market. Some economists believe that property prices are so over inflated that a correction is necessary – for those whose debt is dependent on the value of their bricks and mortar its bad news.

More homeowners to turn to debt management

More economists are encouraging debt management strategies, and investing and saving, criticising a consumer culture that no longer distinguishes between needs and wants. Many of us are storing up financial time bombs as consumer attitude towards debt has shifted dramatically. Debt is often considered a necessary part of financing lifestyles rather than a last resort. Debt management however will be increasingly sought after as the global credit crunch shakes the financial foundations of most homes across the UK. Now property is no longer a "get out of jail card" for debt.

Debt Management Solutions with Varden Nuttall

Varden Nuttall has been established for over 15 years and is dedicated to helping people in financial difficulty find a debt management solution through an Individual Voluntary Arrangement (IVA). Employing 90 people, including trained and skilled IVA administrators, we are one of the largest IVA companies in the UK and handle over 3% of all IVA applications. To find out more about the company, or to make an appointment to talk about putting an IVA in place, call us today on 0800 031 9802 or fill in our online enquiry form.