Much has been made of the ‘middle-class dosser’ Ed Mitchell who fell from a luxurious lifestyle to living on the streets thanks to ineffectual debt management. But for millions of us without financial safety nets, his story is a little too close to home.
He was the man with the dream job, dream salary, dream holidays and dream home. But it soon turned into a nightmare. When Ed Mitchell accumulated debts on his credit card, they spiralled out of control after losing his job. Without effective debt management, the former ITN newsreader lost everything. When it comes to handling debt or seeking debt management strategies, many Brits, especially middle class Brits are struck down by the ‘Keeping up Appearances' syndrome. There is still shame, embarrassment or downright denial when it comes to dealing with the difficulty of debt. But the truth is, no matter how well off you are, spiralling debts can leave you with nothing. If you, like many homeowners for example, don't have contingency funds to pay your mortgage when you're in trouble you need to start thinking about debt management.
Debt management – Prepare for the future
Many people simply don't have a safety net. The only thing stopping them from losing their homes is a monthly wage that's increasingly spread thinner and thinner. Debt is expensive, and with the high interest rates, being in debt has never been so costly. It can soon take on a life of its own. Debt management from the financial experts can help ensure you take the right preventative steps to protect your financial future.
Seek debt management help
The majority of people are finding their incomes stretched now more than ever, with the average property costing seven times a person's salary. If a former journalist whose high profile career including interviewing prime ministers and presidents for ITN over 33 years and on a six figure salary can be brought so swiftly down by debt, it's a warning to us all.
It can happen to you, take control of your debts
Mitchell told the Times newspaper: "I had a false sense of security, that it couldn't happen to me. I was naively optimistic and thought that something would turn up. And it didn't." If you don't have effective debt management in place and are struggling to cope with credit cards, loans or your mortgage, seek professional financial help - before it's too late.
Don't be next, manage your debts
As Mitchell explained further to the Times, debt is a frighteningly realistic threat to all of us: "It's the typical story. I had thought I was rich in the sense of bricks and mortar - I was in full employment and my mortgage repayments were £600 a month," says Mitchell, now 54, "but when I was made redundant I couldn't find another job. So every offer that came through the post for interest-free credit cards, I thought: I'll have some of that." If you are worried about debt, don't you think it's time you sought debt management strategies today?
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.