The number of people seeking debt advice has risen dramatically in recent weeks, according to new reports.
Insolvency advisers have seen a boost in inquiries of more than 60 per cent in the last month as householders confront the reality that they might benefit from an individual voluntary arrangement (IVA), the Times reports.
According to industry professional Terry Balfour, the financial fallout from Christmas is one of the driving forces for the surge in those seeking debt advice.
“January is the cruellest month when it comes to bills and for many already feeling the pressure of higher mortgage repayments along with the raft of outgoings needed purely to service debt this explains why we are experiencing such a surge in queries for IVAs,” he explains.
Mr Balfour concluded by stating that current indications suggest an increase in the number of people seeking to become debt free this year than in 2007.
Earlier this week, Credit Action also stated that applications for IVAs were likely to increase in the year ahead.