People are racking up a higher amount of debt before searching for help through Individual Voluntary Arrangements (IVAs), it has been claimed.
In August, the average amount of debt accrued by people before they sought aid stood at £47,000, reported comparison site IVA.com.
When compared to £35,750 in June and £32,750 in May, the organisation noted that an alarming rise has occurred in the level of debt borrowers are getting into before they ask for help.
It described the trend as a “chilling example of the snowballing debt problem affecting the UK”.
“Every day we talk to people who are desperately miserable and can’t see how they will ever get out from under the burden,” commented director Terry Balfour.
Recently, Citizens Advice joined forces with the Council of Mortgage Lenders and homeless charity Shelter to advise those struggling with their finances.
The organisations encouraged people to talk to relevant companies about managing debt and seeking possible solutions.
By Jamie Price