Figures from Credit Expert suggest that as the country’s debt management problems mount up, around five per cent of the population has or is considering one or other of these debt solution options.
In addition, the study reveals that close to nine per cent of UK consumers have used one credit card to pay off the debt accumulated on another, while a full 80 per cent admit that they often find themselves overspending.
Jim Hodgkins, managing director of Credit Expert, commented: “What this research seems to expose is a serious lack of understanding of the long-term consequences of these actions and how it can affect your credit rating – ultimately impacting your financial future.
“We feel it’s imperative that people fully realise the implications of not managing their finances properly.”
The number of people entering into an IVA in an effort to solve their debt problems in the UK during the first three months of this year totaled more than 13,000, according to official figures from the Insolvency Service.