Thursday 6th of August 2009
As Britons continue to struggle to make financial payments, the amount of debt written off by credit card companies will soar, ratings agency Fitch has predicted.
Reuters reports that the group is anticipating a sharp rise in the number of people falling into payment difficulty as job losses continue and average disposable wealth shrinks.
"Further rises in unemployment, together with high levels of borrowing for UK consumers, will continue to exert stress on cardholders, resulting in increasing delinquencies as they struggle to meet their debt obligations," the group predicted.
Consumers who are struggling with such payments may find that individual voluntary arrangements are a less drastic alternative to personal insolvency.
Speaking to Accountancy Age, Deloitte’s personal insolvency expert Louise Brittain has predicted that the number of people filing for bankruptcy breached the 30,000 mark for the first time during the last quarter.
Her comments came ahead of official insolvency statistics due to be published tomorrow (August 7th).
Written by Rachel Powell
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