‘Record numbers’ struggling financially

Posted 07/06/2011

The number of people in the UK who are finding it difficult to meet their financial obligations is higher then ever, according to R3, the trade body for insolvency specialists.

It was revealed that six million Brits are behind on some of their payments, while two million are in danger of exceeding the agreed overdraft limits on their bank accounts.

This could lead to further charges and draw people into a cycle of debt that is difficult to escape from, the group noted.

President of R3 Frances Coulson recommended that people should try to protect themselves against unexpected occurrences by aiming to save more money each month.

“A sudden change in circumstance such as redundancy tends to trigger insolvency so it is always advisable to put some money aside as a buffer,” she said.

Last week, figures from Credit Action revealed personal debt levels in the UK stand at a total of £1,452 billon.