More people in the UK may face bankruptcy or be forced to arrange an IVA (Individual Voluntary Arrangement) this year, Addidi Wealth has said.
The financial planning and wealth management service warns that the global credit crunch may severely affect consumers if credit is not made more easily available.
Research conducted by debt-management company TDX Group and published in April revealed that an estimated one million people are struggling to cope with an average unsecured debt of £25,000, with total UK consumer debt standing at £1.4 trillion.
It was also found that the credit crunch could double the number of people falling into to debt this year.
With the cost of living increasing, as well as the rising cost of mortgages, food bills and fuel, the research shows that the number of people taking out IVAs could double this year.
Anna Sofat, founder of Addidi Wealth, says: “Last year there were already more people declaring themselves bankrupt or having voluntary arrangements with their debtors and I think that will increase this year.”
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