We’ve all been victims of circumstance due to the recession. But it’s important people know help is available and getting out of debt is possible – despite ever increasing inflation rates.
Manchester, Lancashire UK (PRWEB UK) 25 September 2013
For those struggling financially, the news surrounding the latest inflation changes will come as an unwelcomed reminder that personal circumstances aren't set to change anytime soon.
The Consumer Price Index (CPI), which measures inflation in the UK, reported a drop to 2.7% in August from 2.8% in July. However, inflation measured by the Retail Prices Index (RPI), rose to 3.3%.
This essentially means that prices continue to rise faster than wages – which rose by just 1.0% on average during the same period.
The inflation rate change was due to slowly rising price increases in air fares, petrol, diesel and clothing compared to 2012 – as reported by the Office for National Statistics (ONS).
“As the cost of living in the UK continually rises, families find it increasingly harder to keep on top of their finances. If wages fail to keep up with the rate of inflation, falling into debt – or deeper into debt – becomes impossible for struggling households to avoid.” – Nick Pearson, Director of External Affairs at Baines & Ernst.
In September 2013, Credit Action – the national money education charity – issued statistics stating that 7,824 new debt problems were dealt with by the CAB each working day over the course of a year. These statistics, however, do not include those debt problems reported to other debt charities or commercial debt management companies, such as Baines & Ernst.
And with outstanding personal debt in the UK standing at £1.426 trillion, the recent inflation figures will only add to the financial misery of those in debt.
According to the ONS report on CPI results, transport inflation had increased over all by 1%, clothing and footwear by 2.0%, while food price inflation rose by 4.1%.
Nick Pearson goes on to say “These increases indicate that times will only get tougher for those in financial difficulty. We urge anyone struggling with money to avoid using additional forms of credit, such as loans, overdrafts and credit cards and focus on getting their debts under control.”
“There are many solutions available such as Debt Management Plans, IVAs and Debt Relief Orders that can help people get their finances in order and their debts under control. These solutions can also make dealing with inflation fluctuations easier to manage.”
The financial market has changed significantly and bankruptcy is no longer the only option available to help people get out of debt. There are a number of DEMSA member companies that are helping people combat debt problems with affordable repayment plans.
“Unfortunately, debt is commonplace in today’s society, but it isn’t something to be ashamed of. We’ve all been victims of circumstance due to the recession. But it’s important people know help is available and getting out of debt is possible – despite ever increasing inflation rates,” concludes Nick Pearson of Baines & Ernst.