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The UK’s debt management issues have been affected more than you think, with an overall fall in personal wealth of ¬¨¬£31,000 according to a study by the Halifax bank.

Due to the global credit crunch and recession, the nation’s finances have suffered from an average fall of almost ¬¨¬£31k per household, straining many people’s ability to ease their daily debt problems.

A dramatic drop in property prices and a similar fall in pensions and investments meant that for many people the chance to release equity from their property and relieve debt management issues is no longer an option.

The report highlighted that the overall accumulated wealth of UK homes, plummeted by ¬£815bn during the course of last year Рa drop of 12%.

Martin Ellis, chief economist at the Halifax said: “It is a huge drop to happen in one year. But we have had the biggest house price fall yet seen in just one year, combined with a fall in equity prices.”

Debt advice organisations have spoken of the increased number of people seeking their help, to cope with the reduced options available.

Ivan Cooper, Chairman at leading debt management company Chiltern, said: “For those who have relied on re-mortgaging to get out of debt in the past, they will have to look at other ways to cope with their finances.

“As house prices have fallen so far, the ability to release equity for many people is no longer an option – as there just isn’t any there in some cases.

“A good start is to seek impartial debt advice from a trusted and impartial organisation. These will be able to offer immediate help and support, along with being able to recommend a professional debt solution if one is needed.”

Reputable organisations, such as The Debt People, Chiltern and Hamilton Locke, can provide free debt advice to people suffering with debt problems.

Where necessary they can also provide a number of professional solutions, like Debt Management Plans (DMPs) and Individual Voluntary Arrangements (IVAs), to help you get out of debt.

Debt management issues rise as we all lose £31k is a post from: TheDebtPeople.co.uk