A rise in ‘Zombie Debtors’, people paying only the minimum charges on their debts and not the debt itself, is masking the financial problems being encountered by many households in the UK according to insolvency reports.
A recent review has shown a fall in personal insolvencies so far this year and predicts this will continue throughout 2013.
It records that approximately 25,000 people have entered into either bankruptcy or an individual voluntary arrangement (IVA) in the first 3 months of 2013, a 16 per cent drop on the previous period.
It is believed that individuals in employment are maintaining their debts by way of repaying only the minimum or interest only element of their overall card debts.
Should you be suffering such cash flow problems a formal arrangement with your creditors (IVA), could be the best option of reducing your debts.
Contact our friendly expert advisors who will give you free confidential advice on what would best suit your pocket.
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