Exclusive of mortgage repayments, the latest statistics on debt management troubles in Norwich reveal that one in four of the city’s residents are now officially in the red.
And given the rising costs of borrowing seen nationwide as a result of three quarter-point interest hikes since August 2006, people in the area are finding their finances increasingly stretched are debt consolidations difficult to come by, reports local paper the Norwich Evening News.
Charitable organisation Debtline manger Andy Cobb is quoted as saying: “The figures are staggering. The figures owed by our clients have ranged from £1,000 to a record of £200,000 unsecured debt.”
“The main reasons why people end up in debt are the same as ever – the loss of a job, divorce or separation and being diagnosed with a life limiting illness or disability.”
Figures released by accountancy firm KPGM last month revealed that the popularity of Individual Voluntary Arrangements (IVAs) as a debt solution grew by around 118 per cent during 2006.