Balls outlines UK debt “challenge”

In a recent speech outlining the broad plan of action aimed at tackling the prevalence of debt management concerns nationwide, Mr Balls suggested ten per cent of families in Britain have their financial situations worsened due to a lack of access relevant services.

These families often find themselves struggling to find a debt solution in many cases, while debt management problems can “spiral” and result in “financial distress”, he went on to suggest.

“Managing debts, like a mortgage or a credit card, is part of our every day lives,” commented Mr Balls.

“But debt can quickly become unmanageable in the event of an unexpected drop in income – especially for low-income families with little or no savings,” he added.

According to accountancy firm KPGM, Britain’s debt problems are such that there were enough people entering into Individual Voluntary Arrangements (IVAs) last year to fill the new Wembley Stadium.