Ed Mitchell, the former ITN newsreader who went from riches to rags has challenged the stereotype of homelessness highlighting the fact we are all vulnerable without effective debt management strategies in place.
It's been dubbed the rise of the ‘white-collar tramp' – a phenomenon that has seen the likes of Ed Mitchell go from being a six figure earner to sleeping on a park bench in Hove. Mitchell may be at the extreme end of the debt spectrum, but his downfall is a lesson in debt management. After losing his £100,000 a year job, divorce, debt and homelessness followed. The further he fell into debt, the harder it was to get out until he was left bankrupt and on a park bench.
Debt management – take action today
Debt management has never been so crucial. As fixed rate mortgage packages end and over a million homeowners face increased mortgage outgoings, on top of the continued problem of credit card debt and over-borrowing, debt management is crucial if you want to regain your foothold in society. The consequences of ignoring debt or burying your head in the sand can be catastrophic.
Debt management – Don't ignore the problem
Mitchell said his plight represented an increasing number of white middle class professionals who have fallen into a financial crisis due to insufficient debt management. He told the BBC: "I went from earning £100,000 to zero. I didn't want to claim benefits partly out of personal pride. I didn't have great debts but they spiralled out of control…The 21st Century is seeing more and more white-collar workers in my position: people who are professionally experienced and talented who have found themselves in serious debt."
Debt management help you take control
If Mitchell's story strikes warning bells, you should ensure you seek professional help and advice and get debt management strategies in place. Debt management is crucial due to:
• Soaring property prices that have pushed affordability to the limit
• Personal debt rising – especially as a result of the aftermath of Christmas
• Fears of a housing slump, if you're relying on your home to be your piggy bank, you could be in for a nasty surprise
• Debt management is crucial if you feel you're on the financial brink.
One of the problems regarding debt management is people can still feel a sense of shame asking for advice or help. But the reality is personal debt is soaring and millions of people don't have any financial safety nets. All it takes is a bit of bad luck or misfortune – such as Ed Mitchell losing his job – to go from everything to nothing.
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.