With income unable to keep pace with the rising cost of living, levels of personal debt in the UK rose by 48% in the last year. The good news is that a growing number of people are seeking advice on debt management in Southampton – and finding solutions that work.

Research has shown that bankruptcy in the Southampton area is above the national average. Yet serious debts don’t suddenly happen; they accrue over time. It has become too easy to use credit to bridge the shortfall between income and expenditure. Lower income households frequently take out high interest, short-term loans simply to cover their subsistence needs. However, those on higher incomes are equally at risk, with increased mortgage repayments forcing them into credit situations they can’t afford. However overwhelming your money troubles seem, they can be addressed through a sensible plan of debt management.

Southampton residents frequently feel bankruptcy is the only option – but this should only ever be seen as a last resort. In fact, there are several options open to you, based on your level of income and the amount you owe – a debt management councillor will help find the best solution. For example, a debt management plan is a good way forward for those on regular incomes, with unsecured debts of less than £12,000.

A Debt Relief Order, or DRO, is another type of debt management for Southampton residents who have little surplus income and don’t own their own homes. The order, which is arranged by a skilled intermediary through the Insolvency Service, lasts for 12 months, during which time creditors are unable to take action without the permission of the courts. After this period, any outstanding debts are written off. Those with unsecured debts of £15,000 or more can apply for an IVA, or Individual Involuntary Arrangement, which also protects you from your creditors.

Remember – however dire your financial situation, there are specialists in debt management in Southampton ready to help you.