A recent report compiled by a UK based credit reference agency has revealed that almost 1 in every 3 borrowers is unaware of the exact figure owed to the sum of their creditors.
As alarming as the above piece of information may sound, what may come as even more of a shock is the fact that approximately 1 out of every 8 borrowers has absolutely no clue as to the level of their personal debt predicament. Analysts suggest that as many as 9 million UK residents are currently suffering with some form of personal debt, which is further supported by the increasingly high number of arrears and CCJ notices issued to indebted Brits on a daily basis.
Consumer welfare groups have advised borrowers to think long and hard before acquiring any form of credit, and to also establish whether their desire for credit is more a case of “need” rather than “must”. There is an extremely high propensity of British borrowers who are far to hasty in their decision to turn to credit, with the vast majority of those applying for a debt consolidation loans in particular, able to tame their situation through simple acts of financial discipline.
With regards to those borrowers whose debt predicament can be classed as being “out of control”, recent stats reveal that the number of new IVA and Bankruptcy cases is expected to top the 40,000 mark by the latter part of 2007.
