Monday, 13th June 2005
Debt crisis is a boost for advice companies
A MANCHESTER-based firm is to become the fourth north west debt advice company to float on the stock market.
ClearDebt intends to raise up to £3m when it joins the Alternative Investment Market in September.
The web-based business helps consumers struggling to cope with their levels of debt. It specialises in setting up Individual Voluntary Arrangements – agreements between consumers and lenders, under which people agree to repay a percentage of their debts over a five-year period.
Problems have mounted for millions of families because of five interest rate rises since November 2003 and a flat housing market. In addition, credit has become easier to obtain and banks have been accused of reckless lending.
New figures show more and more people under 30 are being declared bankrupts, many of them women.
Mr Mond said ClearDebt went live in March and is helping scores of consumers, ranging from those who owe £7,500 to a man who earns £20,000 a year but has run up £250,000 of debts using 25 credit cards.
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