The most up-to-date Markit Household Finance Index has said that finances for many families have worsened at their quickest pace ever since the height of the recession in February 2009.
Almost 40% of homes noticed their finances get worse between July and also August, with the average family now far more in debt and having less money to spend.
The survey, which is put together each month by Markit and involves surveying 2000 families, has also discovered that debt is at its highest level for 9 months.
A lot more families are also at risk of debt problems as they have to use their very own savings to cover every day living costs.
There are a variety of different options available to people in debt – from a debt management plan to a debt relief order to IVAs and also bankruptcy, so it is important that if you are concerned about your debts you get advice sooner rather than later.

You may think it is hard to get out debt, but it isn’t. Find out what debt solutions are out there for you. There are many to choose from. Choose one of the debt solutions that is right for you.

1. Settling your debts.

Debt settlement involves negotiating with your debt collectors on an amount that you have agreed to pay to settle your debts.

2. Consolidate your debts.

Debt consolidation consists of either getting a loan to pay off your debts or paying a small amount to each debt collector each month.

3. Pay more than the minimum.

When you pay more than the minimum each month on your loans or credit cards, the interest is eliminated. Credit cards and loans will get paid off sooner. Don’t use your credit cards. You may want to cut the credit cards up.

4. Borrow from your life insurance policy.

Find out how much you can borrow from your policy. Cash out and pay off a debt with it. Repay back the money, so that your loved ones won’t be burdeoned with funeral costs.

5. Ask close relatives for a loan.

Let the relative know about your finances. They may be able to help you out with one bill. Agree to pay the relative back at least two months from the time you borrowed the money.

6. File for bankruptcy.

This should be your last resort. Obtain a bankruptcy lawyer that handles Chapter 7 Bankruptcies. Pay the fee, complete credit counseling, and file.