Nearly 1 million people in the UK are seeking debt help

In the recent Insolvency statistics released in the last few days, it has been revealed that the numbers of individuals who have become insolvent in the UK has risen by nearly 20% on the same analysis just three months previously. I do not think that we have reached a peak yet.

From my own analysis and the number of calls coming into the Help With Debt helpline, I am sure that many more thousands of people are considering going bankrupt, entering into IVA’s and for those with less amount of debts, doing a debt relief order.

It has been suggested by the insolvency body R3 that as many as 960,000 people may be doing formal debt management plans, with as many again having negotiated their own solutions directly with lenders.

A total of over 35,000 individuals entered a formal insolvency solution in the last quarter and I am now helping people who have been on debt management plans for years but find that they are getting nowhere, go bankrupt.

If you have been on a debt management plan to help you manage your debt repayments, and now find that actually you are not really paying down your debt, it may be that you need to speak to somebody about a more drastic solution such as bankruptcy.

There are pros and cons about going bankrupt and it is not a decision that should be taken lightly. However it does deal with debt immediately and for those struggling to make debt management repayments it can bring instant relief.