Debt Advice Help and Support

Consolidating debt in face of pay freezes (27 Jan 2012)

As pay freezes across Britain are unlikely to improve for the next couple of years, many households could find themselves consolidating debt due to the effects of inflation.

 

Long-lasting debt can prey on the mind and lead to people feeling uncertain about the state of their finances, so they may want to seek debt advice from professionals.

 

Depending on how much they owe, they could end up taking out a debt solution, such as an IVA.

 

But pay freezes are an unwelcome by-product of a stalling economy and a government that needs to cut back on spending, according to candidmoney.com.

 

Spokesman for candidmoney.com, Justin Modray thinks rising unemployment will only exacerbate the problem.

 

He says that pay freezes especially hurt in the current climate due to painful price rises in food and fuel - although low interest rates are easing the pain by keeping mortgage payments at relatively low levels.