A better and more complete way of Debt Management
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Since 2007 when the world economy was first hit by the economic slowdown, the banking industry has strived hard to revive the UK economy. This has also led to sudden setbacks for their customers both directly and indirectly. The debt map if any would only show that all regions and people have been somehow been struggling with debt of some kind or the other. The problems surrounding leading banks such as HBOS, Lloyds TSB and RBS reached its peak in 2008 which required the state government to bail them out.
This bailout which was worth billions faced stiff opposition from the masses as it led to the implementation of some stiff and uncomfortable austerity policies by the government. Even today some of these banks have not fully recovered from the setback and are continuing to run into huge and unbearable losses.
A huge apology
In the recent past debt has been the prime focus of the government as it struggles to zero down a huge deficit ahead of the 2015 General Elections. A lot many banks who have been bailed out by taxpayers are striving to show profits in order to payback debts while the economic conditions have only boosted individual debt levels.
A combination of unemployment, inflation and stagnating income has left families with no other options than to ask for extra credit in the form of payday loans, personal loans and credit cards to make ends meet. But under the current scenario paying back debts can be extremely difficult.
Unlike what they had done in 2007 a few banks have shown willingness to help any of their customers burdened under debt. While this move is highly appreciated, it would be worth to wait and watch as to what individual chains would do.
Back to basics
The HBOS owned Bank of Scotland became infamous during the bailout process and although not as excessive as RBS they did not come out of the crisis with any credit and as a result of this their debt ridden customers would be expecting some help. They have comprehensive debt management section on their website.
Although this is not enough but it is certainly a positive step forward from their position in 2007 and others to have followed in their steps. Lloyds TSB for example has also offered tips on debt management to customers who have huge debts trying to make sure that they are weighed down by their debt burdens.
While all this is good is this enough as debt is such a popular topic and people who owe huge money will always seek help frantically. Just a small section on the website might be able to help and especially if the bank itself is responsible for an individual’s huge debts. People with debts are more likely to look for more concrete solutions with repayment options and much more.
Due to rising levels of personal debts many organisations have come to the forefront with solutions beneficial to both creditors and debtors. Payplan.com is one such company which has successfully managed to act as a mediator and advisor between parties to address debt problems.
Recently a new debt map was brought out by Payplan which shows data for personal debt in a particular area or postcode on the basis of a survey. This map can help people see the level of debt in their particular locality as well as the number of people in the neighbourhood who have taken help from Payplan.
This map can help someone decide about going in for help if he or she is anxious and unable to make a decision. The thought that they are not alone in such a situation could probable motivate them to make a choice. Similarly if banks could also follow such steps and be more accommodating with debt management maybe they can improve their reputation much more.