- Tuesday, 28 July 2009The recession is causing thousands of people to default on their credit cards repayments, plunging them into financial ruin.
That is according to the Organisation for Economic Co-operation and Development (OECD), which has suggested debt among British families is the highest of any advanced economy.
Individuals facing credit card defaults could consider entering into an
individual voluntary agreement (IVA) in order to avoid insolvency.
According to the Daily Mail, forthcoming Bank of England figures are expected to reveal that lenders have written off an approximate £1 billion in credit card loans between April and June of this year.
Speaking to the paper, Peter Sargent, partner at Begbies Traynor, said: "More and more people are staring financial ruin in the face.
"The number defaulting on their credit card debts is growing and therefore the number of personal insolvencies will grow over the next two years."
He added that one of the contributing factors to this forecast rise was the diminished level of savings among the population.
In May this year, the OECD stated that the unemployment rate for the OECD area had risen year-on-year by 2.4 per cent to 8.3 per cent.
Recent IVA News23% of first-time buyers save for five years to raise a depositWed, 04 May 2011
Brits dealing with Finance Management should shop around for car insurance Wed, 04 May 2011
Parents, including those with Finance Management, advised to start saving for children's weddingsTue, 03 May 2011
Newlyweds may be in need of Finance Management plans after overspending on weddingTue, 03 May 2011
Renting rather than buying may be an option for Brits with Finance Management Thu, 28 Apr 2011
Consumers coping with Finance Management may want to shop around for cheap energy tariffsWed, 27 Apr 2011
Increasing number of Brits turning to loans for home improvementsWed, 27 Apr 2011
Brits, including those with Finance Management plans, to spend £267 on Royal Wedding Tue, 26 Apr 2011
Equity release can be used to 'become debt-free'Tue, 26 Apr 2011
| |
Money Debt and Credit Ltd, Registered in England & Wales No.05588842.
Registered Office: 45 Clarendon Road, Watford WD17 1SZ
Consumer Credit Licence Number: 0580960