In Ireland and even in the UK there are several more affluent individuals seeking debt advice. The debt advice is being sought due to a high number of credit card debts being seen. The statistics on debt have been increasing since the credit crunch reached the shores of Ireland in which many consumers with high debts, despite their income, were starting to struggle.
Transact is a financial institutional organisation that offers advice and training around the world for debt management. They are blaming the cheap credit card offers for the reason that many individuals have over spent on the cards by borrowing more than they could ever pay back.
The charity has seen in the past the poorer individuals seek advice for debt help. However, in the last six months more professionals and homeowners in affluent areas are beginning to struggle. They may have the income, but they are stretched so thin between the income and the high credit card debts there is no hope.
For example a retired bank manager in Ireland has an annual income of 40,000 Euros, but this person has a debt of 100,000 Euros on his credit cards and loans. In point of fact this person has 20 credit cards and loans in total. For a relatively high salary that is a very high debt ratio. Another individual is suffering from county court judgements regarding his unsecured debts because the debt he owes is the same as his salary. This debt is now owed in full and the money just isn’t there to pay it off.
Transact had a base in Ireland as part of the Community Money Advice. This location has actually closed their doors to new debt advice cases because they are inundated with too many clients at the moment. The demand has increased more than 85 percent in Ireland and the UK since the start of this new year.
Can help stave off the worst of the debt though? It is times like this that is making it more difficult for an answer to be found since most of the unsecured debt consolidation loans are not affordable by those severely in debt. It seems like there is no option for those who can’t sell something to get out of debt or find savings in a hide-a-hole.
While Ireland is not as bad as their neighbours regarding housing prices, it can be difficult to find a buyer willing to pay a higher value to help someone get out of debt with loans and their credit cards. More so it is hard to find a mortgage lender willing to do a debt consolidation loan to absorb the credit card debt.
The debt advice teams are working on helping those in severe credit card debt though, so there is still hope especially if you seek the help before the real trouble begins with county court judgements or bankruptcy and dropped credit scores. Ireland needs to rally in order to stay ahead of the economic downturn.
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