Martin had £85,000 worth of debt and did not think he could repay it once he lost his job, yet he had a growing family to support and monthly repayments of £2,000.
Speaking to the Daily Mail, he said that he had run up debt through credit cards with Amex, Barclaycard, Cahoot, Credit One, Egg, Marbles, Morgan Stanley and two from Halifax. He also had an overdraft with HSBC and a consolidated loan with interest at 11 per cent, over twice the Bank of England’s base rate.
His story is likely to be echoed throughout the UK, with Department for Constitutional Affairs figures today showing a 153 per cent increase in IVAs from a year ago.
Although concerned about his debt, Martin spoke to experts who were able to give him advice needed to tackle his debt.
Most lenders agreed to a Citizens Advice plan to freeze interest on debt as long as he repays his IVA amount, showing that even with large debts, professional advice can offer help.