Debt help 'not sought because of bankruptcy fears'

Friday, June 18th 2010

Debt-riddled Britons may not be getting the help they need because they do not believe their financial concerns are large enough.

According to insolvency trade body R3, 44 per cent of people who struggle with credit card and loan repayments, along with other debt, have not sought advice because of this.

The organisation stated almost one million people falling further behind with repayments may have not asked for support, with nine per cent of individuals citing concerns this would lead to them being made bankrupt.

Steven Law, president of R3, commented: "Professional advice does not mean immediate bankruptcy. It could simply result in advice on budgeting."

He added peace of mind can be achieved by someone asking for help, rather than "burying their head in the sand".

Another recent R3 survey found over a third of 18-24-year-olds in debt have not sought advice, preferring to push debt concerns to the back of their mind.

This drops to nine per cent for 55-64-year-olds.