Seek professional advice about debts urge Insolvency Practioners.
Article by Paymex 18th Jun 2010 00:00
Research commissioned by R3, the insolvency trade body, reveals that more than four in ten (44%) individuals who admit to struggling to pay their debts have not sought advice because they do not believe that their problem is big enough to need help.
R3 President, Steven Law commented:
“It is worrying that individuals are not seeking professional advice at the first signs of financial difficulty because they don’t think their problems are severe enough. While it may be the case that these problems are resolved without help, there is a risk that they might snowball out of control. Professional advice does not mean immediate bankruptcy. It could simply result in advice on budgeting.”
R3 estimates that nearly 1 million people struggling with debt have not sought help, and the research found that close to ten percent (9%) of individuals were reluctant to seek advice because they were afraid of being made bankrupt.
The findings show that the stigma of admitting to debt problems remains as more than one in ten (14%) have not sought help because they are worried about what people would think, with eleven percent concerned about the effect it will have on their families.
Nick Pearson, spokesman for debt solutions experts, Baines and Ernst commented “It is vital that people who are struggling to make payments to their creditors seek professional, holistic debt advice as soon as possible.”
Baines and Ernst Ltd