LOSS OF INCOME TOP REASON FOR DEBT PROBLEMS

Figures from DEMSA (Member of Euro Debt Financial Services) have carried out an annual survey showing the reason why people get into debt problems. The top reasons are as follows;

• Loss of income (i.e. one breadwinner losing their job or having a pay cut or reduction in hours) - 23%
• Spiralling debts – where one credit card or loan is used to pay off another - 23%
• Poor financial management - 15%
• Divorce or separation - 10%

A spokesman for DEMSA said “There is no doubt that many consumers need help managing their finances and taking control of their debts”.

Tim Corfield comments “These statistics reflect what we find in practise. The important thing for any person who feels they are struggling with debt is take professional advice. We suggest they call a local Insolvency Practitioner and have a no obligation discussion, preferably face to face as soon as possible to see what their options are “.