Did you know the UK government now owes around two trillion pounds’ worth of debt? This is an almost unimaginably high number and one where any person may question just how a sum can ever be repaid.
However, is this debt unmanageable? More importantly, at what level does the amount you owe become excessive?
There are several ways to determine if you owe too much debt. However, one mathematical way to do this is to look at how much you earn in a month. If 40% of your income goes towards debt repayments, you may owe too much.
For example, if £800 out of a £2,000 paycheck goes towards repaying creditors; that’s a sign your debt may be excessive. Working out percentages though can be a touch tricky if you don’t have a calculator nearby. Fortunately, there are other ways to tell if you owe too much debt:
If this situation sounds like a familiar one, we may be able to help you get on top of your finances.
Two trillion pounds is a lot of money – that hardly needs saying. However, for the government, this isn’t unmanageable. Despite the sum exceeding the total annual income from the UK, the repayment terms are actually quite affordable – and likely below the 40% mark.
Furthermore, this amount of debt is nothing compared to the arrears the UK found itself in following both World Wars and the Napoleonic era.
If the amount you owe seems excessive – and you know your financial situation better than anyone – contact us today and we can help identify a solution which is right for you. We could recommend an IVA. This is a debt solution which can write off significant parts of what you owe and allow you to make just one affordable monthly payment.
To find out if you would qualify, click the button below: