StudentShare solutions
Triangle menu

Personal Debt Crisis In the UK - Essay Example

Not dowloaded yet

Extract of sample
Personal Debt Crisis In the UK

Seeing how things have gone south economically worldwide, one can only hope that governments, the global financial industry and more importantly, the private individual had better get their acts together. Citizens Advice Chief Executive David Harker cited the CAB statistics as "worrying evidence" that a large and growing number of people will continue to pay the price, and will become overwhelmed by serious debt impacting adversely on their lives. He further stressed that even more worrying are the "signs that people are struggling not only to repay credit, but also to afford day-to-day essentials" (CAB, 2007).
According to a study that analyzed the impact of debt advice in the UK, there seemed to be three different types of debt that can be attributed to the following causes: changing circumstances, poor money management, and creditor behaviour. Changing circumstances typically included unemployment or a change in employment, illness, bereavement and/or separation from a partner. Although the factors which brought about these changes varied, the changes were commonly interlinked and their effect was generally the same: the difficulty interviewees experienced having to manage on a reduced income caused them to fall into debt or exacerbated an existing debt (Pleasence, P. et. al, 2006). Poor money management on the other hand is largely due to a complacent attitude towards financial literacy. Finally, the so-called "rogue" creditor behavior or the unscrupulous and borderline-usurious terms and policies that take advantage of the financially disadvantaged sectors of society. Even then, no singular universal definition as to how the explosive debt problem came to be can be arrived at by financial experts in both the government and private sectors. Thus, the challenge in coming up with the best strategy for reliving and controlling the debt crisis continues to be a heavily-contested area of study to date.
Rising Interest ...Show more

Summary

If the number of "how-to-get-out-of-debt" inquiries at the Citizens Advice Bureau were any indication of how bad the personal debt problem had become in the UK, then one can infer how gloomy things have become. Based on its tally, the bureau received 20% more enquiries from people in debt between 2006 and 2007 than the previous year…
Author : candidolynch
Personal Debt Crisis In the UK essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Personal Debt Crisis In the UK"
with a personal 20% discount.
Grab the best paper

Related Essays

The Impact of the Eurozone Crisis to Non-Member Economies: The Case of the UK
The UK is an example of the EU nations outside the Eurozone, but the impact of the Eurozone crisis currently witnessed does not appear to be selective. Contagion impact fast catches up with the UK and as the recessionary impacts continue to threaten smaller economies in the Eurozone, bigger economies outside the Eurozone cannot feel safe anymore.
14 pages (3500 words) Essay
Debt Crisis
Ultimately, cheap credit was easily available to banks for borrowing. Details of the Crisis Shadow Banking comprises of financial institutions such as investment banks which do not come under the category of commercial banks and hence were not regulated by the US federal government.
4 pages (1000 words) Essay
Debt crisis in Europe
Nevertheless, doubts and uncertainties have occurred over the efficiency and the energy of multi-lateral institutions like the EU (Sandoval et al, 2). The Euro zones’ financially concerned economies, particularly Ireland, Portugal, Greece, Italy and Spain, generated a stern crisis of self-assurance.
6 pages (1500 words) Essay
European Sovereign Debt Crisis
The sovereign Crisis began because of the dysfunction of the monetary union of the states within the Eurozone in addition to the politicizing of the economic control in Europe. The Impact of the European Sovereign Debt Crisis includes the reduction of the bond yield in the United Kingdom.
5 pages (1250 words) Essay
European Debt Crisis
However, Wallison (2012, p. 71) expressed the view that “in a true sovereign debt crisis, a country cannot meet its debt obligations, largely because it does not have enough of the currency in which its debt is denominated.” The European sovereign debt crisis began in 2008 with the banking crisis in Ireland with the contagion of the crisis spreading out to Greece, Ireland and Portugal in 2009 (Investopedia 2012).
6 pages (1500 words) Essay
The Banking Crisis in the UK and the US
2008). Obviously a sudden crash of this nature will compel the experts to question the fundamentals of the business framework whereby auditing forms the critical part of it. The primary task of external public auditors is to carry out fair value assessments of the accounting statements and assess the risks of the banks by getting deep into their credit & liquidity risk management framework and raise alerts as applicable.
11 pages (2750 words) Essay
Credit card debt in the Uk today
The demand for customer side has also given rise to the number of institutions providing these services. This has made the industry more competitive. In United Kingdom the demand for financial products has increased with the increase in net disposable income.
5 pages (1250 words) Essay
Is debt a bad thing. Discuss the impact of debt on the housing market in the UK, with reference to; (a) Levels of pesonal debt (b) Rent Arrears (c) Housing Association
These repayment terms will always be beneficial to the lender. For example, in most of the cases the loan seeker forced to repay more money than he actually borrowed in the form of interests. The lender always lends
10 pages (2500 words) Essay
European Sovereign Debt Crisis
The euro’s value is deteriorating on a daily basis and the costs involved in protecting commercial bonds are on the increase. The values of capital goods have also been on the decline around the globe. There has been an increase in the investors’ fear concerning the market trends around Europe.
2 pages (500 words) Essay
The Impact of Financial Crisis on UK Fiscal Policy and Government Debt
Where the global financial crisis has landed the biggest economies of the world into trouble, it has also offered them another chance to look over their current economic and financial practices and what they have been doing wrong. Not only has the crunch changed the way development is judged but has also lead to change in the way development is perceived.
9 pages (2250 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation