£378,100,000. Sounds a lot doesn’t it? This is the amount that the Government Public Sector net debt (PSDN) will grow today (equivalent to £4,376 per second). In fact, the government debt increases by £378,100,000 each and every single day (source: http://www.creditaction.org.uk/debt-statistics.html). This puts personal debt into perspective. The recent recession has not helped with the government being forced to bail out a number of high-profile financial institutions.
Often one wonders how the government cannot just be in an alarming rate of debt but be in debt at all. Well, just like an individual, it borrows money; money from people like you and I, and money from international lending institutions. Methods it uses to borrow from the public include the issuing bonds and bills. This then creates national debt.
The debt can be owed from various departments within the government. There are certain categories of debt, mainly defined as internal or external. Internal being borrowed from within its own country and external, on an international level, such as borrowing form the world bank.
Government liabilities can be of a shorter long term nature. Short term usually applies to debts which are due to be paid within 12 months. Long term refer to debts which are due to be paid over a period of more than ten years. Medium liabilities are debts which lie between the two extremes, those debts which are due to be paid for a period between one and ten years.
Confronting debt for any company or individual can be a daunting prospect. The individual may have a relatively small credit card debt but with an income that makes paying it a strain on himself and possibly his relationships. To counter that, more debt is amassed and the individual quite a situation for himself. Then you have a government with such an alarmingly increasing amount of debt, it makes for some seriously depressing reading. Sometimes professional help is needed. There are those who are trained in such matters and with such professionals at your disposal, you would be unwise to attempt to face this kind of situation alone.
MoneySolve can offer free and confidential, expert advice. Call them now on freephone: 0800 040 7064.