40 Per Cent Of Population Out Of Control With Loan Debts
It is a well known and well documented fact that a growing number of individuals in the UK are struggling to cope with their finances following the recession, with many people are facing spiralling debts through personal loans and credit card bills.
But new research has found that although many people are out of control with their personal loan debts, somewhere in the region of 44 per cent of these individuals have not sought any professional help to try and resolve the matter.
The news comes from the insolvency trade body R3, who say that many individuals do not believe that their personal loan and card debts are bad enough to have to take action, or seek insolvency advice before it is too late.
The research also found that out of the 1 million individuals who were struggling to keep up with their loan repayments, around 1 in 10 did not want to take advice for fear of being declared bankrupt. A further 14 per cent said that they were embarrassed of ashamed of letting their families and friends know that they were in financial difficulty.
Steven Law of R3 said “It is worrying that individuals are not seeking professional advice at the first sign of financial difficulty because they don’t think their problems are severe enough. It would seem that many individuals who need financial advice are burying their heads in the sand. Unfortunately refusing to acknowledge your financial troubles won’t make them disappear.”
“The sad thing is, the longer someone takes to get help the fewer options will be available to them. If individuals leave it too late to seek help, bankruptcy may be their only choice. 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.”
