Thursday 3rd of March 2011
Adults in the UK owing more than £15,000 and having difficulty keeping their finances in order may wish to seek IVA answers, as paying off what they owe could take a long time, new research has shown.
The Consumer Credit Counselling Service (CCCS) has shown that it would take 43 years for the average bankruptcy client to repay their debts.
In its Debt Dashboard for quarter four 2010, the organisation found three-quarters (17,605) of those who had been advised by a debt charity to declare bankruptcy were earning less than the average wage.
The CCCS revealed the average debt of its clients recommended bankruptcy was £31,000, while £40,000 in unsecured arrears was owed by one in five.
Delroy Corinaldi, external affairs director at the group, said: "Overtime bans, wage caps and forced shorter working hours are limiting the ability to maximise income."
One area people in Britain may be struggling with is credit card debt, as recent research from Gocompare.com found 22 per cent will carry arrears on plastic throughout 2011.
By Chris King
- Alternatives to bankruptcy available, expert notes
- Bankruptcy 'should be a last resort' to tackle debt management issues
- Bankruptcy 'has improved attitude towards debt'
- Insolvency levels rising, figures show
- Negative equity leading to bankruptcy increase, says expert
- Bankruptcy to get more expensive for Britons in debt
