Posted on 11th July, 2018

Media Release: As financial debt hits record levels, Resolver explains how to get help

James Walker, founder of Resolver says:

According to a new study by the Financial Conduct Authority, 4.1 million people are in financial difficulty as a result of missed bills – and over 25 million of us are potentially at risk of ‘financial harm’.

I’ve been warning about the financial pressures many people are under for years now – and Resolver’s stats show credit and debt complaints are reaching record levels. [see below]

As a nation, we’ve almost become used to high levels of debt. But I believe it’s good to acknowledge that many people are on the borderline of defaulting on their financial commitments – because there’s a lot we can do to help get them get back into the black.

 

What to do if you’re experiencing financial difficulties

  1. Acknowledge the problem. This is the hardest bit. So make yourself a cup of tea (or grab a glass of wine) and work out your incomings/outgoings for the month.
  2. If you don’t need it, cancel it. Not using that gym membership? Old insurance policy that you forgot to cancel? Every little bit adds up – so ditch what you don’t need.
  3. Contact your creditors. The FCA’s rules about financial difficulties are clear. If you’re struggling to meet your financial commitments and ask the business for help, they should come up with some solutions for you to help you buy some time while you get back on your feet again. They should also consider suspending interest and charges for a short period if it’s making your situation worse.
  4. Get a (free) plan. If your financial difficulties are ongoing, then speak to a free service like StepChange, a charity set up to help people get back on top of their finances. They’ll contact your creditors for you and negotiate payments you can afford. It’s not easy, but it’s a solution. Never pay for a debt management service – there are free options out there.
  5. Be realistic. This bit sucks but I’m afraid it’s necessary sometimes. There are times when you look at your finances and it’s apparent you can’t afford your property. If that’s the case, speak to the mortgage provider about downsizing to a cheaper property. It’s a better option than defaulting on your mortgage.
  6. Remember, if a financial business fails to help you when you tell them about your financial difficulties – or makes things worse, you have the right to make a complaint. We’ll help you at www.resolver.co.uk.

 

Key credit and debt statistics

Case Service type Apr 16 - Sep 16 Oct 16 - Mar 17 Apr 17 - Sep 17 Totals % increase / decrease
Credit cards 746 1237 2629 4922 113%
Mortgages 600 1352 2164 4793 60%
Payday loans 670 1147 1546 3937 35%
Loans 1014 1317 1481 4861 12%
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