- Monday, 3 August 2009Growing numbers of Britons are turning to debt advice as they struggle to cope with credit card, mortgage and personal loan arrears, it has been reported.
While just a few years ago, advisors would rarely see anyone needing help with debts of £25,000 or more, now clients seeking debt advice on arrears of £75,000 are relatively commonplace across the UK.
According to a new report in the Times, many of these debtors are turning to IVAs (
individual voluntary arrangements) so as to get their personal finances back on track.
Peter Sargeant, the president of the insolvency practitioners' trade body, R3, told the paper that this trend is likely to continue for the next few years, spelling bad news for many lenders keen to get bad debts repaid.
"The recession is showing no respect for social standing. Solicitors, pub landlords, teachers - everyone is being hit," he explained.
"These people have had to realise that their house is no longer a gigantic cash machine that they can simply draw money out of whenever they choose."
These comments come soon after the Citizens Advice Bureau (CAB) reported that it had received around 400,000 calls regarding debts over the past year, with many of these clients likely to have turned to professional debt advice in order to get back into the black.
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