Tuesday 1st of December 2009
The latest Credit Action report reveals that an expected 100,000-150,000 Britons will repay their unsecured borrowings through a debt management plan this year.
According to PricewaterhouseCoopers, personal insolvencies will top the 120,000 mark. Meanwhile, the Insolvency Service claims that during the third quarter of 2009, there were 386 people made insolvent every day.
This is currently the highest figure on record and could highlight how debt management plans can deal with lower levels of borrowings before interest rates push them up to uncontrollable amounts, which could result in individuals being declared insolvent.
A debt management plan can reduce the interest on unsecured credit and extend repayment periods, which can give people more time to meet their financial commitments.
With creditors assured that repayments are more likely to be met under these manageable conditions, borrowers may no longer be as worried about further legal action or unsolicited letters and phone calls.
Previous AXA research found that 1.4 million Britons have taken time off work over the past 12 months because of money concerns, while 70 per cent admit they fret about cash while in the office.
By Neil Burton
