Britons facing ‘problem’ debts
The UK is currently facing a total unsecured debt "problem" of £25 billion, new research from the TDX Group has shown.
According to the debt management company, around one million Britons - a total which includes many holders of mortgages for professionals - are struggling with repayments worth £25,000 each.
This comes as part of a total consumer debt - including mortgages - of £1.4 trillion in the UK.
According to TDX, these figures could result in increased numbers of people filing for bankruptcy or registering for a debt management plan or an individual voluntary arrangement (IVA).
The group claims that, such is the acute nature of the unsecured debt problem, the number of people taking the latter two routes to pay off their debts could double to 800,000 for 2008.
With this in mind, TDX is urging consumers to think carefully about how best to manage their debts - advice which extends to selecting an IVA.
"The fees paid to an IVA company vary from between 5,000 and 9,000 pounds - and these come from the debtor's repayments," Mark Onyett, chief executive of the group, said.
"We estimate up to 45 per cent of individuals entering into an IVA don't complete them, with some 15 per cent failing in the first year."
According to the debt management company, around one million Britons - a total which includes many holders of mortgages for professionals - are struggling with repayments worth £25,000 each.
This comes as part of a total consumer debt - including mortgages - of £1.4 trillion in the UK.
According to TDX, these figures could result in increased numbers of people filing for bankruptcy or registering for a debt management plan or an individual voluntary arrangement (IVA).
The group claims that, such is the acute nature of the unsecured debt problem, the number of people taking the latter two routes to pay off their debts could double to 800,000 for 2008.
With this in mind, TDX is urging consumers to think carefully about how best to manage their debts - advice which extends to selecting an IVA.
"The fees paid to an IVA company vary from between 5,000 and 9,000 pounds - and these come from the debtor's repayments," Mark Onyett, chief executive of the group, said.
"We estimate up to 45 per cent of individuals entering into an IVA don't complete them, with some 15 per cent failing in the first year."
