New research has revealed the extent of anxiety across the UK in relation to money matters, with 41% of British adults saying they are worried about their current level of debt.
The proportion of people who are concerned about their debts rises even more in the 18 to 44 age group, with 54% of those surveyed reporting that they are anxious about their borrowings. And those concerns seem to be well-founded: 40% of British adults say they often or sometimes struggle to make it to payday.
The banking crisis of 2008/9 reduced the amount of lending which was available to individuals and businesses, as banks tried to reduce their exposure to bad debts and reduced their lending as a result. Regulatory changes in the banking industry has tightened up the criteria for mortgages and loans and the general availability of credit has reduced as a result.
However, as the economy has improved in recent years we have seen an increase in new types of lending, including ‘Pay Day Loans’ for individuals and crowd funding for businesses. This has made credit generally easier to obtain and there is a concern that a new ‘credit bubble’ could be building up.
A common scenario is for a business owner to find that their business is having cash flow problems. As a result, they draw less money from the company but use their own personal credit to prop up the business in the hope that the situation improves. If the company goes bust, they may have the ‘double whammy’ of losing their job and also having to repay debt which they took out to keep the business afloat.
If you are struggling to keep your company going or you are worried about your personal debt, give us a call today to find out your options. Call us on 01709 331300 to arrange a free and confidential meeting to discuss your options.