Credit Card Debts Spiral

Wednesday 9 th May 2007

Credit card customers have been warned to keep an eye on their spending as new figures out this week show that over 330 people a day are declaring themselves bankrupt.

Figures released this week show that a total of 30,075 people have become insolvent between January and March this year which is the highest number recorded since records began in 1960.

Customers who are unable to control their debts are opting to declare themselves bankrupt or choosing to set up an Insolvent Credit Agreements (IVA) in order to help them alleviative their debt with. KMPG state that the average customers setting up an IVA has an unsecured debt of around £52,700 discounting any mortgage commitments.

People who are experiencing problems with debt are advised to seek professional support as soon as possible and can get help and advice from many areas including The Citizen’s Advice Bureau and The National Debt Helpline.