How Much Debt is too Much?
Determining how much debt is excessive can be difficult. However, there are a few ways to identify this. Read here to find out more!
Did you know the UK government now owes around two trillion pounds’ worth of debt? This is an almost unimaginable figure and – understandably – might make a few people nervous. However, how do you know whether your debt is excessive?
If you know the amount you owe is too much, it’s time to do something about it.
Click the button below to find out if we can help you:Apply for Debt Consolidation
Do I owe too much?
Whether you owe an excessive amount of debt largely depends on your circumstances. However, as a guide, you may wish to seek debt support if the monthly amount you repay comes to 40% of your income for that period.
For example, if you bring in around £2,000 per month – and £800 goes towards repaying your creditors – you might require a debt solution.
Although a very mathematical way of evaluating your finances, this can be hard to determine if you don’t have a calculator nearby. Instead, there are other ways which may reveal if you owe too much:
- You have sleepless nights;
- You frequently worry about your finances;
- You don’t realistically see a future where your debts will be repaid;
- You’re living paycheck-to-paycheck – with hardly any spare cash at the end of the month;
- Creditors frequently call for money you don’t have
If this sounds like your situation, don’t worry – help is available.Consolidate My Debts
Does the government owe too much?
Although owing two trillion pounds sounds like a lot of money – and make no mistake, it is – this situation is not unmanageable for the government. Despite this sum exceeding what the country generates in a year, the repayment amounts are relatively low.
Furthermore, this sum is a drop in the ocean compared to what the UK owed at the end of both World Wars and the Napoleonic era.
My debt is excessive, can I get help?
If more than 40% of your monthly income goes towards repaying debts, you may be able to get help through a consolidation loan. This solution can effectively repay your creditors within a matter of hours and leave you making just one affordable monthly payment.
This should leave you with much more income left over at the end of each month.
To find out if you qualify, click the button below:Get Debt Consolidation
APRs from 5.8% to 89.9%
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Unsecured Loan Representative 69.9% APR
Borrowing £7,500 over 36 months, repaying £502 per month, total repayable £18,083. Total cost of credit £10,583. Interest rate 69.9% (variable). The lenders on our panel offer loans for 12-60 months, with rates from 5.8% APR to 89.9% APR. The Representative Example is based on all loans paid out by lenders between 19th Apr 2022 and 23rd Dec 2022.
Secured Representative 11.7% APR
If you choose to add fees to the loan: Assumed borrowing of £25,000 over 120 months, plus a broker fee of £2,500 and a lender fee of £250 would result in monthly repayments of £345.55, the borrowing rate is 8.6% (variable), the APRC is 11.7% (variable), total charge for credit £16,466.00 and the total amount payable £41,466.00. You can opt to pay the lender and/or broker fees upfront, your adviser will discuss these options with you.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it. All rates vary subject to loan amount, loan type and status. Repaying your debt over a longer period of time may increase the amount you pay.