Wednesday 19th of August 2009
Debt relief orders (DROs) are a "good idea" for some Britons who are financially struggling, according to one monetary expert.
Speaking to the Northern Echo, Peter Sargent, president of insolvency trade body R3, said DROs are not very expensive to enter into, which could be ideal for individuals with less than £15,000 of debt and low disposable incomes.
He said that because of these low disposable incomes, many individuals will be unable to afford bankruptcy and therefore DROs could be a more affordable alternative.
Jim James, north-east regional chairman of R3, noted that he is not surprised that bankruptcy enquiries are on the increase because of the impact of the recession. However, Britons concerned about the consequences of going bankrupt may prefer to research DROs.
Mr James added that "with more than 20,000 inquiries about DROs, we know the true figure of Britain’s personal debt problem is not showing up in today’s official figures".
Recent research from Credit Action claimed that average household debt in the UK, including mortgages, stands at £58,320.
By Rachel Powell
