Redundancies are causing significant increases in the number of people seeking bankruptcy advice, it has been stated.
Jacqueline Gallagher, manager of Citizens Advice in Derry, told the Sunday Journal that many borrowers have bought items such as cars and houses on credit, but are struggling to repay after losing their jobs.
She explained that alternatives to bankruptcy – including debt management plans and individual voluntary arrangements – are available for those with loan and credit card debt.
Observing that some consumers owe more than Â£80,000, Ms Gallagher said: “People can manage their repayments on a steady income but when that income stops coming in and everyone is looking for their money, it’s just awful.”
Recent statistics from Credit Action revealed that more than 2,900 people are being made redundant in the UK every day, with one in 33 people currently in work expected to be unemployed by the end of the year.
By Andy Mackay