Frances Walker maintains that while the majority of borrowers in Britain do not encounter any serious debt management problems, for those who do the issues extend beyond purely financial concerns.
“Something like between four and eight per cent of people who take out credit will get into difficulties, which is a small proportion, but obviously a huge number of people,” she explained.
“Debt causes a lot of problems: it’s an emotional problem as well as a financial problem.”
Ms Walker went on to suggest that around half of those who turn to the CCCS for debt advice face financial problems as a result of irresponsible lending, while thousands struggle as a result of unforeseen circumstances “like divorce, separation or ill-health”.
In January, a report from the CCCS claimed that for many women in the UK it is the perceived stigma of bankruptcy that deters them from taking up this debt solution option.