A report from the accountancy firm PricewaterhouseCoopers has predicted that the number of people entering an Individual Voluntary Arrangement (IVA) will increase next year.
“Over-borrowing” and increased rates of interest will see debt management problems spiral out of control for more and more people over the course of next year, the organisation insists.
“There are tough times ahead for both consumers and credit card companies,” said Richard Thompson, partner at PricewaterhouseCoopers.
“Banks are continuing to take action in response to the rise in consumer debt by tightening their credit acceptance policies.”
Recent research by the accountancy firm also shows that the typical British adult now has around £33,000 worth of debts, which is almost double to corresponding figure in 2000.
Earlier this year, the KPMG accountancy firm predicted that more than 130,000 people in the UK would enter an IVA over the course of 2007.