Borrowers have been urged to seek debt help if they find that they are unable to cope with what they owe.
According to personal finance magazine Moneywise, a range of options are available – including means to have debts written off.
Spokesperson for National Debtline Beccy Boden Wilks told the publication that the correct solution for those hoping to clear debt will depend on individual circumstances, adding: “Getting advice will help you understand your options and take the right steps towards a debt-free future.”
Among these is an Individual Voluntary Arrangement (IVA), which Moneywise explained can see the amount needing to be paid significantly reduced, with all debt being written off after five years.
Director at the Association of Mortgage Intermediaries Robert Sinclair recently suggested that IVAs and bankruptcy are set to increase, as people with poor credit histories struggle to secure subprime lending in the current economic climate.
By Andy Mackay