Financial bovver needn’t be the Ender the world

Eastenders’ much-loved landlady Peggy Mitchell isn’t the only one facing financial ‘bovver’ – everyday 2,750 County Court Judgments are issued in the UK and it is estimated that 8.2m British adults are in now serious debt.

Like Peggy, many people simply bury their head in the sand, hoping their problems will go away. In fact research by Credit Reference Agency Callcredit shows that upwards of 60% of UK consumers simply do not know how much they owe, while 15% openly admit to not having a clue!

A shocking proportion of those with debt problems are, like Peggy, over 60 – according to the Consumer Credit Counselling Service last year debt problems of this age group accelerated faster than any other and the organisation predicts that by the end of 2007 it will be helping more people over 60 than under 25.

So how can people best deal with debt and, perhaps more importantly, how can they avoid getting overburdened with debt in the first place? Mel Mitchley, debt expert at Callcredit offers some tips

If you’ve ‘done a Peggy’ and are in financial difficulties:

* Don’t be a financial ostrich – take control of your finances and get a copy of your credit report. This will show you exactly how much you owe and to which lender
* Once you know how much you owe, contact your lenders to work out a repayment plan
* If you’re struggling with repayments contact a debt advice service such as the Consumer Credit Counselling Service

To avoid getting into debt:

* Work out a budget based on your income and fixed outgoings and stick to it
* Before taking on additional debt ask yourself if you can afford the repayments
* Take control of your finances by shopping around for the best credit deals and regularly checking your credit report

ENDS

About Callcredit:

* Callcredit (www.callcredit.co.uk) is the UK’s most innovative, state-of-the art credit reference agency, with an extensive range of information and value added services for businesses and individuals.

* MyCallcredit is the consumer arm of credit reference agency Callcredit and provides consumers with online access to the details of their credit file at http://www.mycallcredit.com/

* Callcredit has harnessed state-of-the-art information technology with an unrivalled knowledge of the industry’s needs to develop a range of innovative information solutions. Solutions that are enabling major lenders and a host of other blue chip companies to address regulatory requirements, make better credit decisions, target new customers more effectively and manage existing customers more profitably.

* Callcredit forms part of the Skipton Information Group, and is one of five core businesses along with database management company EuroDirect, market analysis firm GMAP Consulting, online payment service provider, Legatio and DecisionMetrics, specialists in the development and implementation of scorecards and affordability assessment.

Sophie Smith

Senior Account Executive

GolinHarris
Fox Court

14 Gray’s Inn Road
London
WC1X 8WS
t +44 (0) 207 067 0415

m +44 (0) 7812 214342
f +44 (0) 870 990 5447
ssmith {at} golinharris(.)com