Tuesday 14th of April 2009
Borrowers have been urged to seek advice in order to identify alternatives to bankruptcy.
Jacqueline Gallagher, of Citizens Advice, told the Sunday Journal that debt management and IVAs can help avoid this, but that many people do not realise other options are available.
Ms Gallagher is manager of the charity in the Derry area of Northern Ireland, where credit cards and loans have been found to be leaving some people with debts of over £80,000.
And she noted that many are suffering as a result of redundancy, having purchased items such as houses and cars on credit.
"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," said Ms Gallagher.
Need for IVA help could be set to rise further in the UK, as Credit Action has found that over 2,900 people are being made redundant each day.
