As many as seven million British consumers are struggling to meet their debt repayment commitments, according to recent research.
Figures compiled on behalf of accountancy firm KPMG show that almost one in four people around the country find it difficult to pay off the debts they owe to creditor on a monthly basis.
Additionally, a recent poll by YouGov established that close to 11 million people are convinced that their debt problems are likely to worsen over the next few months.
In light of the latest data on the UK’s debt management woes, the company has reiterated its prediction that a record number of Britons will enter an Individual Voluntary Arrangement (IVA) or file for bankruptcy this year.
“Those people who have been robbing Peter to pay Paul, transferring balances from card to card, re-mortgaging and taking equity out of their property to pay off spiraling debt are fast running out of options,” said Steve Treherne, a personal insolvency practitioner at KPMG.
ClearDebt recently asserted that an agreement on protocols between the Insolvency Service, the British Bankers’ Association and debt solution firms is likely to resulting more IVAs being entered in 2008 than was the case last year.