The current average that each UK adults now owes is £30,000 , mostly in mortgages but also in loans and credit cards. The Bank of England’s figures show that total household debt is now above £1.5 trillion. That is a £50 billion increase from last year.
There is concern that with inflation expected to rise next year this means higher interest rates. This means that for many people, previously affordable debts such as mortgages, loans and credit cards may soon be unaffordable. With inflation set to rise, now is the ideal time to protect yourself against increased interest charges. If you have a mortgage on a variable rate it may be worth looking at the fixed rate options. If you have credit cards that you are paying interest on, look to move that debt to an interest free card.
Of course the best method of dealing with your debts is to try and repay them as quickly as possible. Just remember check that there are no early repayment penalties before you do.
If you feel that you are unable to manage your debts the best advice is to seek professional help now.