Over spending is endemic according to research by a financial comparison website. Their survey suggests that five million of us (one in ten adults) spend more than they earn every month. Although debt has always been prevalent in British society in the last decade, the current economic instability means debt management schemes have never been so important. Without successful debt management, many people are risking their homes, pensions and future welfare, as well as that of their families and children.

Debt management – battling the ‘spendemic'

It's a simple equation – spend more than you earn, and you'll end up in debt. The problem is exacerbated by the fact many of us are already contending with costly debts that are eating into our monthly budgets. Debt management can feel impossible when the cost of debt is so high – if you can't see a way of balancing your books, ignoring the problem will only make it worse leaving you at risk of extreme action – such as house repossession or bankruptcy. Seeking professional debt management help is necessary if you know your debts have taken on a life of their own that you feel powerless to stop.

Living beyond your means

It's also estimated that a fifth of adults have no spare cash at the end of the month – leaving them vulnerable to debt if an unexpected event occurs. Anything from redundancy to a burst water pipe, a big family wedding or relationship breakdown can impact disastrously on our finances if we don't have contingency funds. Debt management can help ensure you safeguard your future from potential financial meltdown.

Debt management on the 2008 agenda

Economists are urging consumers to stop spending as the economy hits the rails as a result of the global credit crunch. Fears of rising unemployment alongside an increase in the cost of living means those five million of us that spend more than we earn could be facing a very shaky future. The results of the research come at a time when many economists believe that higher debts will force more people into insolvency this year then ever before. Debt management solutions should be the top of everyone's agenda in 2008.

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.