The lack of credit availability will see bankruptcy levels rise across the UK in months to come, according to one expert.
Anna Sofat, founder of financial management firm Addidi Wealth, is convinced that many people with debt problems will be left with little option but to file for bankruptcy when they see their loan applications rejected.
Credit is becoming less freely available and coupled with rises in the cost of living more and more people will come to view bankruptcy as their only method of becoming debt free, she suggested.
“Last year there were already more people declaring themselves bankrupt or having voluntary arrangements with their debtors and I think that will increase this year,” said Ms Sofat.
A report from the TDX Group recently estimated that “problem” personal debt in the UK is now worth in excess of £25 billion and hundreds of thousands of people are finding it almost impossible to clear their debts.