This month sees a new method of coping with debt management being introduced.
On April 6th, those struggling to repay outstanding amounts may be able to apply for a debt relief order to help avoid bankruptcy.
Consumer body Which? noted that the services are “enshrined in law” and can assist people who are having difficulties with “unmanageable debt”.
To be eligible for the orders, borrowers must have unsecured liabilities of less than £15,000 and a disposable income of £50 or under after household expenses have been deducted.
In addition, their total assets cannot be worth over £300 and they must not be involved in another insolvency procedure.
Which? urged those considering embarking on such a plan to seek debt advice if necessary.
In related news, Credit Action this week reported that the total level of personal debt in the UK stood at £1,458 billion at the end of February.
By Jamie Price