‘Debt management' are two words that many people's bank accounts desperately need. As the global credit crunch spreads its chilly fingers across the economy, everyone is feeling the financial shiver. From the high street shops through to the employment market, the UK is feeling the squeeze. Debt management and budgeting means that major retailers such as Tesco and Marks & Spencer have witnessed big drops in their sales targets as consumers are saving their pennies or spending more on bills and mortgage repayments.

Debt management – shoppers tighten belts

The rising household costs and increased cost of mortgages means homeowners simply don't have the disposable income at hand. In the past decade, even if consumers didn't have the credit, they did have access to bottomless pits of easy credit in the form of credit cards and loans. Over borrowing was actively encouraged by high street banks and building societies offering mortgages up to five times a person's salary. Debt management has now become a major concern as a result of the fall out from these over borrowing years.

Rising household costs trigger debt management plans

The drop in sales at Marks & Spencer triggered the chief executive Sir Stuart Rose to blame rising household costs. Debt management plans as a result mean less money for fashion and luxuries as homeowners tighten their belts. Spending has also been squashed as higher household bills are making an impact. For someone paying a high mortgage, a rise in utility bills can be enough to trigger debt. It can only take a few months before that debt can become unmanageable and a debt management plan is necessary. According to research by leading accountants Ernst & Young, households in the UK are being squeezed harder than at any time in the past four years as mortgage payments, higher taxes and utility bills take up 78% of incomes. It's no wonder that just by spending that little bit extra on clothes, cars, entertainment, and holidays or on expensive occasions such as weddings, it can tip many homeowners into a spiral of debt. Debt management is something more of us will have to consider.

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.