Official debt figures underestimate the number of Britons in need of debt support, an industry expert has claimed.
A study carried out R3, the Association of Business Recovery Professionals, found that 600,000 people across the UK have taken out debt management plans (DMPs) in a bid to help solve their financial problems .
However, official figures do not taken into account DMPs and instead focus on individual voluntary arrangements (IVAs).
As a result, the figures do not reflect the true extent of the nation’s debt problem, according to R3 president Nick O’Reilly.
He explained: "A DMP is an informal alternative to an IVA or bankruptcy which works to clear someone’s personal debt without the formal implications of the official arrangements ."
"This can be a good option for individuals who have manageable levels of debt . However, there is cause for concern that these informal arrangements have the potential to turn into a ''life sentence''."
More Britons In Need Of Debt Help Than Statistics Suggest
Fri, 22 May 2009
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