A formal enquiry into household debt is set to begin following high lending statistics. With UK borrowing at £200bn, many households are struggling. With lending as high as during the 2008 financial crisis, MPs have been spurred into action.
Policy support
Treasury Select Committee Chair, Nicky Morgan MP, is leading the enquiry. Alongside a further enquiry into how prepared we are as a nation for a no deal brexit, Morgan will take to constituencies to assess household spending and saving.
Speaking to the press, Mrs Morgan said:
Debt is a huge emotional burden for people.
Unstable personal finances often emerge as problems raised by constituents,
so we hope to take evidence for this inquiry from around the country.
We will examine what policies could support households in achieving appropriate levels of saving,
and the sustainability of the UK's household debt and consumer credit.
With families saving less than since the 1960's,
there are worries for those on lower incomes.
With
8.3 million people already facing debt problems,
the future looks tough if no action is taken.
Proactive research
MPs are set to start collecting evidence locally immediately. Some important figureheads in the research include:
The research will look at more than the single issue of family savings. Other research being collected will include lifetime financial planning and the intergenerational divide. Finally, they will also look at the cost to millennials facing reductions in living standards, rising rental costs and weak wage growth.
Dealing with personal debt
Personal debts are classed as debts owed by individuals. This includes credit cards, loans, car finance and other consumer based borrowing. While there are regulatory bodies in force to ensure borrowing is under control, some are asking the government to step in.
We recently blogged about consumer credit being a delicate balancing act. That act could benefit from official government input alongside the existing external body, the FCA.
If you are a creditor with a consumer debt requiring collection, remember there are plenty of ways to tackle it. Even if a debtor is in financial difficulty, deals can be struck. A good debt is a manageable one and keeping it that way is vital. If you need help with collecting a consumer debt, contact AYOM on 0800 130 3357 or email enquiries@ayom.co.uk for more details.