Life is expensive, and it's getting even more so. So much so that homeowners are actively seeking out debt management strategies at a time when many fear for the financial future. The prediction that house repossessions are set to raise means many homeowners are realising now is a time to save not spend. But saving can be impossible if you've got a mountain of debts. Financial advisors recommend that those in debt focus on paying off that debt as a priority, because debt is expensive. Being in debt only triggers more debt as high interest rates take their toll. Debt management strategies can help find ways of securing financial health.

Utility bills prompt debt management

But it doesn't help that there's so much confusion around utility bills. It sounds trivial, but the cost of utility bills has risen dramatically. If you took out a mortgage in the last ten years, chances are you over borrowed to get on the housing market or to secure your dream home. Property prices in the UK are so inflated that many homeowners commit a huge proportion of their income to their mortgage payments. This leaves little room for manoeuvre if everyday living costs more, or for any unexpected financial blows that should be factored in for – such as emergency work on your car or a burst heating pipe. But many UK people simply don't have contingency funds, savings, pensions or any assets. Debt is more of an issue than ever, and debt management solutions are set to become increasingly sought after as more people wake up to the looming debt crisis, as well as the fear of poverty in old age and the risk of house repossession.

Homeowners face bill shock

A BBC report suggested there were confusion fears over regional gas bills as some of the UK's largest power firms changed the way they charged for gas. One UK fixed price was swapped for regional pricing strategies that left many confused – with Londoners and residents in the East Midlands paying £45 more for gas a year than those in the North West. Add to that the announcement that energy bills are set to rocket as a result of increasing costs of fuel because of the global credit crunch, homeowners could be in for a shock they didn't budget for.

Debt management a principal concern

Many people who step onto the housing ladder for the first time underestimate the cost of utility and council tax bills, leaving them seriously out of pocket as the months roll on. For these homeowners who could even see the value of their homes drop as the housing market struggles in 2008, a debt management strategy should be their principal concern.

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.