Four out of 10 people who are struggling with debts do not seek dept help, new research from R3, the insolvency trade body, shows.
Forty four percent of individuals with debt issues fail to seek debt advice because they feel that their problems are not big enough to warrant help, according to the findings.
The fear of being declared bankrupt is also deterring those who should be seeking help with their debt. In all, R3 estimates that one million people are missing out on help with their problems and are therefore enduring hardship or making the situation worse for themselves.
Those whose debt problems are worsening are also missing out on advice about a range of debt solutions that may be available. Debt management programmes and IVAs may resolve a situation without creditors resorting to bankruptcy proceedings.
As R3 President, Steven Law explains:
“It is worrying that individuals are not seeking professional advice at the first signs of financial difficulty because they don’t think their problems are severe enough. While it may be the case that these problems are resolved without help, there is a risk that they might snowball out of control. Professional advice does not mean immediate bankruptcy. It could simply result in advice on budgeting.”
“If someone seeks help early they will be able to take stock of their finances and will be on their way to attaining peace of mind. They may also avoid going into a formal insolvency procedure.”, Mr Law added.