Phillip Beck, from freeivadvice.co.uk, maintains that “lax lending policies” have resulted in people gaining credit when they are clearly unsuited to such an arrangement and subsequently found themselves facing serious financial difficulties.
Mr Beck commented: “The banks could very easily go to the credit reference agencies and see that some people shouldn’t be lent money to.”
“The amount of consumer debt in the UK has steadily increased over the years and it is finally getting to the point where people have so much debt which they simply cannot repay.”
And Mr Beck also pointed out that the social stigma which used to deter people from entering bankruptcy is becoming less of an issue in the UK.
Meanwhile, a decision on whether or not the cost of borrowing money is to increase in Britain is to be announced by the Bank of England this week.