Seek professional help to repay debt

Statistics which show that one in five people working in Northern Ireland now spend half their salary paying off debt is astonishing and worrying. For much of that debt, well over £1bn, is owed on credit cards which charge high rates of interest, making it more and more difficult for borrowers to actually clear their debts.

Of course, some people will argue that those who find themselves owing huge sums of money on credit cards only have themselves to blame. While there is an element of truth in that, it must also be remembered that many people took out loans or opened credit card accounts when borrowing was easy and economic prospects looked rosy. The loans were used to finance a lifestyle that is no longer sustainable for most people.

The bursting of the property bubble and the recession brought a harsh realism into the economy and now many people are saddled with large debts at a time when they are concerned about their job prospects as well. The austerity measures introduced by the Chancellor to pay off the national debt will inevitably mean job losses in the public sector and many of those private firms which do business with government bodies.

For those who are struggling to make ends meet and to pay off their debts, it is imperative that they seek professional help from organisations like Citizens Advice or the Consumer Council. Both these bodies have long experience of dealing with financial crises and can help borrowers bring some stability to their finances by working out attainable ways of repaying debt.

The high levels of debt in Northern Ireland are symptomatic of an economy in trouble. While there have been tentative signs of recovery in other parts of the UK, the economy here remains stubbornly sluggish amid fears that job prospects may even recede before they improve. Politicians must ensure that any actions they take in the coming months do not make the situation even worse.

Source: belfasttelegraph.co.uk