Around 600,000 people struggling to handle debts are not accounted for by official figures, it has been suggested.
Those who agree on a debt management plan (DMP) with creditors are not included in government statistics, insolvency body R3 has noted, reports the Press Association.
This is unlike Individual Voluntary Arrangements (IVAs) and bankruptcies, which are taken into account when calculating the level of people who are having difficulties coping with debt.
A DMP is a formal arrangement with between a borrower and a lender come to an agreement under which the borrower can pay back a small amount each month.
President of R3 Nick O’Reilly said: “This can be a good option for individuals who have manageable levels of debt”.
Recently, Newcastle Building Society predicted the prepaid cards would become more significant in the future for debt management.