Tuesday 4th of August 2009
A key part of successful debt management is admitting that money problems exist, a report claims.
The Independent notes that while there are a number of avenues that can be followed once debt problems are in the open, taking the first step to admitting difficulties exist is a "key part" of the road to recovery.
Figures from the government’s Insolvency Service are to be released later this week and they are expected to show an increase in the number of people becoming insolvent, the paper claims, suggesting they will top 30,000 for a quarter for the first time.
However, such figures may rise further still. There tends to be a time lag of up to a year between people losing their jobs and failing to meet debt payments, the newspaper says, adding that even if the economy recovers, more people may need to turn to debt management solutions to help them restore their finances.
The latest figures from Credit Action suggest that one in every 33 people in work is to become unemployed this year, so admitting to money problems sooner rather than later may be one tactic that could help people to control their finances.
By Mark Waterman
