Skint After Christmas? Get Help Now!
If you are “skint” after Christmas you are not alone. The UK is facing a debt crises yet we still seem unable to stop our holiday spending.
Why do we keep doing it? We spend too much year upon year and we simply cant afford it. It’s a disease for many of us, one which we simply can’t control. This gets to be a real problem if your sending have pushed you beyond your overdrafts or credit card limits. So what do you do now?
Debt experts in the UK have advised people who are in this situation to get help immediately.
The Insolvency Service is also highlighting that young single people especially are dealing with difficult financial situations. According to the Insolvency more young people are turning to a new form of bankruptcy which is known as a Debt Relief Order (DRO). A quarter of the 44,000 who have taken out a Debt Relief Order since 2009 are aged between 25-34.
The figures demonstrate the growing burden of debt among young families, money advice organisations say. Its not just young people who face financial problems after Christmas. Many middle age people are also seeking protection with DROs.
These orders are designed for people who have debts of less than £15,000, who don’t own a property and have less than £300 in savings or other assets. The DRO is becoming a popular choice as it is a cheaper process than bankruptcy for those in and doesn’t 
involve the lengthy process of going to court.
DROs are not available in Scotland, where bankruptcy and insolvencies are handled by the Accountant in Bankruptcy. However the people of Northern Ireland are able to take advantage of them. If you take out a DRO in Northern Ireland, the same conditions for qualifying apply, although you are also allowed to own a car, up to the value of one thousand pounds.
Although DRO’s are best avoided, if one where to look on the the positive side, the DRO figures show that many people in the UK are actually now acknowledging that they have unmanageable debt and are being proactive about their debt problems.
People wheo are in DROs must declare them when applying for credit for the next six years.
Most people ignore their debt problems to the last possible moment. They take out loans to pay credit cards. They take out credit cards to pay their loans and so on. This borrowing to pay other borrowing rarely ends happily. It causes additional stress and only delays the inevitable. With a program like a DRO, it helps many people to make a fresh start, free from their unmanageable debts.
Christmas is statistically the most likely time when people are liable to get into serious debt as spending rockets. Some UK families even turn to high cost payday lenders, who offer short-term loans at extortionate interest rates. These people will most likely know that they will be unable to afford these loans, however due to the pressures of Christmas, they do it anyway.
Debt management companies are expecting a surge of calls for assistance in January, with the main advice services advising that UK individuals should seek help as soon as possible instead of burying their head in the sand or taking out loans which they will eventually not be able to repay.
