Poorest families in debt

Posted in Debt on Tuesday, May 15th, 2012 at 11:50 by Martyn Shaw.

A financial report has stated 10% of UK households are outspending their incomes.  This has continued for the last decade.  Britain is vulnerable to another financial crisis unless more residents seek debt management techniques to solve their debt problems.  There are issues with a rise in inequality of class systems wherein the poorest households have to continue to borrow in order to survive.  These families are in a debt cycle that is hard to get out of even with debt management.

Low and middle income families are spending more than they make, but those in lower income brackets are more exposed to troubles as they are typically renters with their rental payments increasing without income increasing.

Debt management can include a myriad of answers, such as how to spend less to stay within the monthly income budget, to consolidating debts to make monthly payments more affordable.  Those looking towards resolutions are hoping to find a way to increase the savings by examining past decades to see how it is possible to decrease the debts families suffer from in the lower income brackets.

The last economic crisis that the UK suffered is on the mend, but it is still in a tenuous situation.  Those in the lower income classes are still suffering greatly from a lack of funds and high levels of debt, while the economy is recovering with an influx of cash from bailouts and investors with money to spend.  If household expenses continue to rise it may be difficult for families in a low income situation to survive.

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