Limited Credit Availability Cause Rise in Overdraft Debts
Debt consolidation, consolidation loans, Debt Management Plan
According to a report released from a debt advice charity it has been noticed that number of people is rising struggling with overdraft debts. It happens because other types of credit are available with various restrictions and majority of people do not qualify for other credit terms. Reports released by the Consumer Credit Counseling Service (CCCS) has said that just in first half of the year almost 70,000 people have applied here to get advice on financial issues. This report shows that overall figure will go much higher at the end of the year 2012 since the start of credit crunch.
It has also seen remarkable decline in credit card debt problem reports by the people. Number of people seeking debt consolidation repayment help has decreased. Typical level of debt as well number of credit cards to the clients had also fallen. Experts say that it has been noticed that overdraft debt problem has risen. People are moving towards overdraft debts after finding that they are not eligible to get any other type of credit. Majority of personal loans and credit card terms are available with tough lending environment where it is really hard to qualify for the same.
CCCS has warned the consumers who are digging into the overdraft debts to cover financial problems. This can seems fair to manage instant financial requirement through this option but this tactic is not sustainable in long term. Almost all age groups are seeking overdrafts financial help. CCCS has reported that its clients owe an average of above £2000 that rises from £1700 from five years ago. Old age people generally 60 and above are typically seeking more financial help through overdrafts. The number of people of this age group has doubled from the number of people contacted the charity in 2007 for debt help.
, Debt consolidation
, Debt Management Plan