R3’s President Steven Law commented:
“Going to this source for financial resolution will simply build up a larger store of debt and create more pressure and stress. We must highlight the importance of obtaining professional advice over panic measures that will worsen the problem.
“Post-recession we stand on the brink of a personal insolvency crisis that will take years to work through the system as this finding indicates.”
The survey also reveals that almost one in four individuals struggling with their debts (23%) say they are avoiding contact with people they owe money to, while 30% have not spoken to their family or partner about their financial problems.
Steven Law concluded:
“Clearly traditional fears of what others may think or the fear of bankruptcy is still putting people off seeking a solution to their problems. Unfortunately, avoiding the problem or going to the wrong source is likely to only increase the eventual likelihood of bankruptcy."
