From consumer debt to council tax arrears
Since the financial crash, there has been a huge drop in consumer credit but a greater proportion of people are now in arrears on their most essential bills like rent, energy and council tax. Unlike a debt arising from a one-off expenditure, these debts can grow as a massive weight on these people’s shoulders. If people are behind on their essential bills, it is a sign that without help, they cannot afford to meet even the most basic costs.
Falling behind on payments can leave people losing the most essential services such as heating and electricity, losing their home, facing bailiff enforcement and in extreme cases, jail. These consequences can lead to seriously negative knock-on effects for family finances, children’s chances at school and can increase reliance on other support services and act as a drag on the economy.
Council tax arrears are particularly concerning. Councils rank among the most unhelpful types of creditor when people are in difficulty and some research has revealed that almost a third of parents agree that councils are ‘not helpful at-all’. Some councils help those struggling financially but for those that don’t, it can be an excruciating experience.
A cycle of debt
Many people who have reported council tax arrears have admitted they’re struggling to keep up with credit commitments too. These have included payday loans, credit cards and overdrafts. People falling behind on council tax face serious financial problems and were already behind on key bills and credit commitments to make ends meet at the time they started to struggle to pay council tax.
If you have found yourself in this situation, it may be worth considering a Debt Management Solution. These put all of your debts into one affordable monthly sum so that you can take the necessary steps back to a financially happy life. We offer free consultations so why not get in touch to find out what we can do for you?
Council tax debt – the new insecure?
For many people who fall into problem debt, the issue is usually income shocks. Specific things such as reduced benefits or income, injury and illness account for a higher proportion of the reasons people fall into difficulty. Many people with council tax arrears were facing adverse circumstances when the arrears kicked in.
These include stresses with mental and physical health, disabilities, bereavement or caring for an adult friend or relative. These stresses have often occurred at the same time as people were facing reductions in the financial support available to them. Many people had seen their council tax benefits decrease, some suddenly became liable for council tax and many had seen reductions in financial support for their housing.
A lot of people struggling with council tax debt are the new insecure. Renting, working part time and struggling to make ends meet in the aftermath of a financial crash. These have formed a backdrop to a mixture of adverse personal circumstances, life events, changes in employment and reductions in welfare support that make it difficult for people to cope with essential costs.
Find hope in debt consolidation
It’s no secret that debt adversely affects mental health but if you undertake a Debt Management Solution, you may find that you’re feeling generally a lot better both physically and mentally.
Some of the effects of having a Debt Management Solution include:
- Reduced anxiety
- Improved sleeping
- Improved confidence in work
- Improved confidence in general!
When creditors bring bailiffs to your door and you find yourself counting pennies when the month has barely begun, it’s bound to affect your mental health but there really is a way out of it. There are many debt consolidation options available to those who are struggling and all cases are dealt with sensitively.
Our clients have found themselves feeling happier a lot quicker than they expected thanks to our debt consolidation options and our dedicated team of debt experts.
What WB Debtcare can do for you
At WB Debtcare, we can offer a range of debt consolidation options to you. We understand how daunting it can be to struggle with debt issues and we understand the impact it has on mental health, families and relationships and that’s why we’re here to help.
We have a team of debt experts that can help you get back on your feet and financially healthy.