Unexpected changes in people’s personal circumstances could result in “financial turmoil”, it has been suggested.
An article in the Daily Express, citing Moneyexpert.com statistics, claims that life events such as divorce, the death of a spouse or losing one’s job could cause serious debt problems for consumers.
It notes that becoming debt free is increasingly difficult, as budgets become “tighter than ever” as the price of council tax and energy escalates.
Changing personal circumstances could create a need for people to seek debt advice, the newspaper suggests.
It notes that proposed new laws could see them being given a respite from potential bankruptcy.
However, the new plans suggested by the Ministry of Justice – which will offer a debt solution in the form of an extended period of loan repayment – might not come into force for a few months.
Citing debt experts, the Daily Express suggests that the key is for those who need debt help to keep creditors informed of their financial situation.
Research published by personal finance website Fool.co.uk last year discovered that a fifth of people owing £20,000 could not afford repayments.
David Kuo, head of personal finance at the website, offered debt adviceand suggested consumers need to be sure they have a way out of their credit situation before borrowing.