As the Premiership football season kick-started this weekend, many supporters around the country risk developing debt problems to support their multi-million pound footballing icons.
According to research, around one in five football fans has been forced into debt to cover the cost of following their team.
With the cost of following your football team rising by 15 per cent over the past twelve months, according to Virgin Money’s football fans’ inflation index, more fans are placing themselves at risk of developing serious debt problems.
Those who result to going into the red to follow their team borrow an average of £682, with around 20 per cent owing between £1,000 and £2,500.
Add this to other outstanding unsecured balances – like personal loans, overdrafts and credit card debts and it’s easy to see how debt problems could quickly amass if there was a change in financial circumstances.
Debt advice organisations have warned against amassing unnecessary debts in this changing financial climate.
Ivan Cooper, Chairman at debt management specialists Chiltern, said: “With higher unemployment and the recession causing uncertainty in the jobs market, it would be unwise to develop debt problems for unnecessary living costs like following your football team.
“Whilst it may be easier said than done, it’s better to cut back on unessential items so you can save money each month, then pay off your season ticket in full each year rather than put it all on an expensive credit agreement.”
Most in need of debt help are Arsenal fans, with average football-related borrowings of £1,284, while fans of Manchester United are a close second at £1,231. West Ham and Aston Villa have the most fans in debt at 27 per cent, with Everton, Manchester United and Manchester City fans close behind with 26 per cent each.
Grant Bather, spokesman for Virgin Money, said: “Football fans can ill afford rising costs to follow their team, which explains why so many have borrowed to make ends meet. For many fans, supporting their club is non-negotiable so even in a recession they will find the money to ensure they are in the stands next season, even if that means being in debt.”
Calls have been made to top clubs to help their supporters further and to help them to avoid them from developing debt problems.
Malcolm Clarke, chairman of the Football Supporters Federation, said: “Season tickets are a big outlay, particularly as they come at the same time as fans often have to pay for their holidays, and the deferred payments schemes of some clubs have sometimes carried high interest charges. We would like to see clubs looking to see if they can do more to help fans.
“An example of very bad practice which doesn’t help fans balance their books is Manchester United’s insistence that season ticket holders are required to buy tickets for all the European and FA games, which they introduced last season. That’s a practice which we don’t want to see copied by other clubs.”
Reputable debt advice organisations, like The Debt People, Hamilton Locke and Chiltern, can offer a number of professional solutions for supporters who may already be experiencing debt problems.
Professional solutions include Debt Management Plans (DMPs), Individual Voluntary Arrangements (IVAs) and Trust Deeds.
A Debt Management Plan (DMP) is a flexible way to repay all of your unsecured balances like your personal loans, store cards or credit card debts with just a single monthly payment. All unsecured balances are gathered into one easier-to-manage monthly payment which is based on how much you can realistically afford after priority payments have been accounted for.
This means that once you have paid for living costs, like your rent/mortgage, food, travel to work, council tax and other essential items, the remainder is paid to the debt help company who distribute this to the people you owe to on your behalf.
Payments towards your balances are then rescheduled over a longer period of time to make them more affordable.
The amount you pay is flexible too according to your situation, so if you receive a lower wage than previously the payment ca be reduced to reflect this. Likewise, if you have paid off a secured loan and no longer have this expense (such as a car agreement), the amount can be increased so you get out of debt quicker.
An Individual Voluntary Arrangement (IVA) is similar to a Debt Management Plan in that all unsecured balances can be joined into a single payment, however this is repaid over a set period of time – usually within five years.
Once the IVA term is complete all remaining unsecured balances are written off and you can walk away debt free.
With an IVA you are protected by a legally binding agreement, which stops creditors changing their payment demands and terms of the repayment plan. This will be drafted by a qualified Insolvency Practitioner who can also offer impartial IVA advice and support.
For immediate debt advice, or to learn more about how a Debt Management Plan or IVA could help you to be debt free, please call the number at the top of this page.
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