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Debt Collection News Roundup – April, 2017

Here at Access Credit Management we pride ourselves on keeping up to date with what’s going on the international debt collection industry.  We aim to bring our readers interesting and relevant news about the sector so once a month we publish a News Roundup.  This should keep you up to speed with all the important happenings in the industry and provide you with a valuable resource that that you can use to stay fully informed of all the latest news.  It would be interesting to know what you, the readers, think of the stories that feature here.  If you have any stories you think we should be covering or if you’d like to comment on this or any of our other articles, please do so on our Facebook page or tweet to us on Twitter.

Virgin Money is keeping a close eye on rising consumer debt levels after credit card balances increased 8% in the first quarter of 2017.  According to Virgin Money, credit card debt rose to “2.65 billion in the three months to March 31st, 2017, a worrying trend in such uncertain economic times.  Earlier this month, the Bank of England’s Financial Policy Committee warned that the recent increase in consumer borrowing could represent a risk to the UK’s financial system, resulting in banks at risk if their lending rules are too lax and borrowers are unable to make repayments.

More doom and gloom with the news that a massive third of the UK population experience sleepless nights or problems at home due to money worries.  It was revealed that the average borrower will wait until their debts have topped £25,000 before seeking help from professionals, that’s a frightening number of people willing to allow the situation to become progressively worse before taking appropriate action.  The new survey also found that 25% of Brits consider debt to be a part of everyday life.

A Brighton foodbank which has helped nearly a thousand people in just one year has disclosed that the reasons given by most of the people using it for their situation are benefit problems (usually changes and delays in payments), low pay and debt.  The Whitehawk Food Bank revealed that it dished out emergency food supplies to 946 local people, with 366 of those being children.  All were classed as being “in crisis” and given three day emergency food supplies.  The food bank also supplies other essentials to users such as nappies, sanitary products and washing powder.  Food banks in the area are now partnering with other agencies to provide additional services such as welfare advice, debt support and budgeting help in a bid to help people break out of poverty and the crisis cycle.

These news stories represent an uncomfortable trend.  Here at Access Credit Management we know that when it comes to managing debt, the sooner help is sought, the easier it is to address the problems.  Debt doesn’t disappear, it just grows until it becomes unmanageable.  Taking expert advice before the sums involved become too large to handle is the best way to secure your financial future.