UK Debt Statistics Suggests We Are In Love With Our Credit Cards
UK Debt Statistics show us as a nation of chronic debtors, in love with a plastic culture that encourages spending beyond our means. UK Debt Statistics from Credit Action reveal outstanding personal debt stood at £1.456 trillion at the end of January 2012. This is up from £1.452 trillion at the end of January 2011. Shockingly, Credit Action reports “The average amount owed per UK adult (including mortgages) was £29,634 in January. This was around 122% of average earnings.”
Living the high life has led many to become unstuck, and they now languish in the financial doldrums with a depleted credit score. UK Debt statistics suggests a poor credit rating can be a crippling financial burden, limiting a person’s financial options and costing them money. A great many of the financial services that we take for granted rely on our ability to gain credit. Imagine how difficult life would be if you are unable to sign a contract for a mobile phone or get access to the Internet. All kinds of companies from mortgage lenders to car dealers will not deal with those with poor credit ratings.
Top Tips To Control UK Debt
Thankfully there are well documented UK debt strategies listing the steps you should take to improve your credit rating.
First and foremost you will need to gain accurate information of your current situation. Companies such as Credit Expert or Experian can supply you with your current file for as little as £2. It contains information personal and public information as well as your financial history. Inaccuracies in any of these areas can have major effects on your credit rating so check the information carefully and if you judge it inaccurate you can add notes.
Secondly, it’s vitally important to get yourself on the electoral roll. By simply registering with your local council you will instantly improve your credit score as this allows lenders to verify your identity.
UK Debt Statistics recommend taking stock of your situation and if you have credit cards that you are not using then these accounts should be closed. They will still count towards the total amount of credit you have available to you and may affect you eligibility for loans or mortgages.
Ways To Improve UK Debt
It may come as a surprise that the main method by which one improves a credit rating is by the use of a credit card. You should start using a credit card immediately if you do not already, as lenders will have access to information about how you use it. By spending small amounts and paying the balance completely every month you can raise your credit score by showing you a verifiable and reliable person. If your credit is truly in trouble you may need to use a bad credit credit card on your first steps to recovery.
Beware joint bank accounts as they can lead to inaccurate credit scores as you and your partner’s financial destinies are merged. This is great situation if your partner has a good credit score but may create difficulties if they have had problems in the past.
Finally, without a landline contact number many companies will simply refuse credit so get one installed. If you have any comment about the UK Debt situation then please leave your thoughts below about your experiences with the Uk debt situation.