The CEIC and the European Central Bank said the loan of the EU’s families reached 6.2 billion in January 2025. Although mortgage loans represent more than 5.23 billion, the remaining 1 billion euros may be a cause of concern.
In recent years, the average rate of income -related loan has gradually decreased, meaning that citizens are borrowing the lower rate of their income.
The European average is currently 97 %, but some of the rich areas such as Scandinavia and the Netherlands have high owned rates, and sometimes exceeding 200 %.
This shows that debt is not just a burden to the poor. This was proved by the financial crisis in 2007, and the people who had bought luxury items with financial schemes such as cars and watches were unable to repay their loans.
But by 2025, is it really possible to stop the ownership of people with an increase in the cost of living?
“The problem is not the debt itself, but the (risk) This debt is uncontrollable and we will become a debt that we can no longer manage,” Kevin Mountford, co -founder of the UK Savings Site, said, “Eurnevs Kevin Mountford, told the co -company of the Raisin UK Saving Site.
In this episode of ‘The Big Question’, Kevin Hannah talks about the techniques to end the loans and the advice to create a positive financial future.
What are the main reasons for the personal loan?
Kevin says credit cards, “unrelated” fees and simplicity of internet purchases are the main factors that cause citizens costs.
“I am from the time of the budget of the other way. Money was taken. It was spent. It was finished when it was over.”
“But now, we all look at our bank juices and realize that we have spent the amount we don’t think,” says Kevin.
By 2023, the Netherlands, Denmark, United Kingdom, Finland and Sweden have borrowed more credit cards in 10 countries of the world.
Kevin advises that social networks are guilty of bombing consumers with advertising and ‘influenced’.
This fire is more fuels with “buy and then pay later” plans. Although they often appear to be an attractive way to delay the “free” clothes or delay the payment of “essential purchase, Kevin warns the consumers, and must carefully examine the conditions of repayment before they are started.
“I have friends who have trouble sleeping. What they are doing at midnight? They enter the Internet and start buying goods. That’s where social networks and new technologies can create problems, so we must be careful.”
Top Tips for Placing Debts
Most of us will ask for money at one point of our lives, which is very normal. However, when debt, benefits and money start to withdraw, it can start stress.
AdvertisementKevin emphasizes that “do not bury the head in the sand.”
“The worst thing you can do is that when that invoice comes, you break them up and keep them. The problem does not disappear. It will worsen and its consequences will be very serious.”
The first thing to do is to talk about whether the bank or credit supplier can change the allowances. Most often, the loan deadline can be extended to reduce monthly allowances.
Illegal users are sometimes legally occurring and use legal loans to reach the most vulnerable and monthly end, which can provide speedy money, sometimes an attractive solution in the short term, but the income conditions are unfavorable and the problems in the long -term debt are worse.
AdvertisementKevin also recommends talking to friends and family about financial issues. Talking about money is prohibited in some cultures and many are ashamed of debts, but having a support network can help you make better financial decisions and reduce stress. This will also contribute to enhance financial awareness and education.
Kevin proposes to “a family or a group of friends,* why shouldn’t you sit down to take a cheap wine bottle every quarter or every six months (because you don’t want to spend more than the account) and look at your expenses? Take a small competition to reduce them.”
What is Credit Cooperation?
One of Kevin’s main aid while dealing with loans is to avoid paying for advice. He argues that holding more money to reduce costs can be the opposite.
Instead, many charities are ready to help. They can also help the resources to improve financial education, so that the text will be less encouraging and alien.
Advertisement“The problem is that if you don’t know it, you do not realize the ability and control level you need to use your funds better,” Kevin explains.
“It is playing in favor of banks and other financial institutions. We become very concerned. We do not change the product as much as we do. So it creates a problem.”
Kevin advises to go to a loan co -operative for those who are really fighting for the end of the month.
Credit co -operative companies belong to their allies and community, in which shareholders can claim the money borrowed at a lower interest rate than traditional credit providers. Unlike banks, the benefits are not distributed among shareholders, but are re -invested in the union to provide low interest commissions and rates.
AdvertisementMembers are usually attached to the work, location or industry.
‘Bhaktan’Giant questionWe will chat with leaders and experts from various fields to talk about some of the most important topics of the current panorama.
Check out the video above for full interview with Kevin Mountford by Raisin UK.
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