More people 'will need debt relief' in 2008
Published On 5 January 2008
Increasing numbers of people in the UK could be in need of debt relief in 2008 as economic pressures mean more face bankruptcy.That's according to James Ketchell, spokesperson for the Consumer Credit Counselling Service, who said that insolvent individuals may be more willing to opt for bankruptcy or an IVA.
"I think most of [these insolvencies will be] bankruptcy rather than IVAs," he said. However, "bankruptcy seems to have a very bad stigma attached to it, and people for that reason do not go through with it", he added.
Chartered accountants Grant Thornton forecast recently that 28,000 people could face insolvency in the first quarter of 2008 as Christmas spending and the credit crunch takes it toll.
Mr Ketchell recommended that anyone struggling with debts run up over the festive period should work out a "timetable" for repayment. "Budgeting is always important, at any time of the year - but especially now," he said.
