The number of applications for individual voluntary arrangements (IVAs) has continued to rise although people appear to be paying back less money.
This is according to TDX Group, a company dedicated to providing debt recovery solutions for major banking, government and utility services, Creditman reports.
According to figures for the end of September, 35,507 individuals entered IVA proceedings, creating a total of £1.8 billion worth of unsecured debt.
But it has become apparent that those involved are asking to pay back less money than a year previously, with the typical proposed monthly sum resting at £316.19.
This compares to £345.43 in the third quarter of 2008.
Head of financial difficulties with TDX Group Matt Trueman remarked that the recession has played a part in worsening the problem of the UK’s personal debt in the last nine months.
In other news, it recently emerged that equity release was fast becoming the debt management plan of choice for those aged over 60, with figures from the Key Retirement Solutions Equity Release Market Monitor showing that 36 per cent of those entering such schemes are doing so to pay off debts.
By Sarah Adie