Debt issues ‘need to be tackled by industry’

Industry ought to “take account of and look to try to tackle” the tendency among consumers to find credit management an impossible task, Mr Jones suggests.

But the finance expert did maintain that for the most part British credit consumers are able to manage their debts without the need for Individual Voluntary Arrangements (IVAs) or declarations of bankruptcy.

“The vast majority of people in the UK use credit really wisely and benefit…from the advantages it brings. Only a small minority of people actually struggle,” said Mr Jones.

A report from accountancy firm KPMG released last month revealed that there were in excess of 100,000 people entered in to an IVA during 2006, enough to fill the new Wembley Stadium.