Q3 sees rise in individual insolvencies

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A new study has highlighted a 28.2 per cent like-for-like rise in individual insolvencies during the third quarter of the year.

According to research conducted by free debt advice service Talk About Debt, 35,242 filings were made between July and September 2009.

However, the firm believes even more people may be seeking help with debt, as the figures do not include the number on management plans.

Jessica Bown, of Talk About Debt, said that despite more debt management plans being taken out than any other solution, there is no central system for registering them and they are not even included in national figures.

She added: "This is potentially just the tip of the iceberg. Even more worryingly we know that many are unnecessarily paying for these schemes due to receiving poor advice."

Credit Action recently claimed that 9,300 per day are seeking advice on debt from the Citizens Advice Bureau as they bid to tackle their financial problems.

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Tags: citizens advice bureau , free debt advice , poor advice , insolvencies , bown , advice service , tip of the iceberg , Debt management ,

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2009-11-09 12:50:57 © Moneyextra.com