- Friday, 29 May 2009People on lower incomes who choose to pay for big-ticket items in instalments could find themselves at risk of debt trouble, according to the director of Credit Action.
Chris Tapp of the charity noted that the numbers of people entering into an
individual voluntary arrangement (
IVA) or declaring bankruptcy is increasing and it is important for people to seek debt management advice at the earliest sign of difficulty.
Those on lower incomes tend to be among the most at risk, as many cannot afford to buy large items upfront and some also struggle to make monthly repayments, he said.
"It is important to always try and come to some sort of deal with the organisation that you have borrowed from, they are the first port of call that you need to speak to," Mr Tapp stated.
Figures published by Credit Action this month indicated that 323 people declared themselves insolvent or bankrupt on May 1st and estimated the figure could increase to upwards of 435 people per day by the end of the year.
The rate at which people enter into an
IVA or declare bankruptcy is estimated to be one person every 3.3 minutes.
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