When debt hits rock bottom

Those considered middle-class five years ago are now facing the same sort of debt problems as low-income families. Julie Dayman explains how her family are dealing with life at the bottom. She is currently drowning in a sea of £55,000 worth of debt and is often kept awake at night with the worry of how she is going to manage.

She main worry how her family will cope should she went bankrupt. Her other alternative can also be an individual voluntary arrangement, where she may even avoid having her home repossessed.


How debt can take hold

When Julie met Dan, they took out a large mortgage for a beautiful dream home which was based on five times Dan’s income. When the children came along, Julie decided to give up her job and rely solely on Dan’s income.

At the time, they coped but now it is getting harder and harder to meet the repayments. The mortgage dominates the family income and takes over 50% of Dan’s salary before primary utility bills and other debt is even considered.

Reflecting on her situation, Julie says, “We bought this property thinking that it would be an ideal investment for the future but now it has turned into a lovely home that weighs us down with debt. Many people commit suicide over owing this amount of money and I am amazed that I am still coping with the pressure.”

Julie blames the banks as customers believe that they will only accept them for credit that they are able to afford. However, in reality, they give you the world and then leave you to go out there and cope on your own, inevitably having to search for debt solutions.