New Years Debt Related Resolutions? …

With 2022 in full effect we are noticing debtors realisations that their arrears which they envisaged paying in January are not coming to light. 

With many debtors in a Christmas debt ‘hangover’ it is important for recovery specialists to keep communication active. Debtors who have made promises of double payments they can not keep now need a new realistic plan made- one which is affordable before it spirals out of control and no payments are made. If undue pressure is placed on individual debtors to pay in full the likelihood of receiving any payment at all greatly reduces. It is best to keep in honest open communication with debtors to agree a realistic payment plan to ensure that overall debt is chipped away at.

With many debtors facing the new year with a spring in their step and resolutions on the forefront of their minds make sure you are also up there keeping the momentum for your client to ensure payments are made on time.

Consumer borrowing on credit cards jumped to its highest level in more than a year in November, pushing all forms of household unsecured credit to £1.2bn, according to the latest Bank of England data. Analysts said much of the increase reflected a more confident, pre-pandemic pattern of borrowing, but warned that many low income households had become more dependent on loans to cope with an inflationary squeeze on their finances from rising utility bills and the higher cost of the weekly shop. The dramatic reduction in savings growth was seen as supporting the trend among some consumers to be more confident and spend a higher proportion of their income, while others on lower incomes reduced saving to cover higher bills. Martin Beck, the chief economic advi...

https://www.theguardian.com/money/2022/jan/04/uk-consumers-credit-card-debt-saving-covid-bank-of-england