Debts rocket post-Christmas, experts warn
People are being warned not to delay in seeking help if they have been tipped into debt as a result of Christmas expenses.
The Christmas period often sees an upsurge in debtors as spending increases over the festive month.
The advice comes after the Insolvency Service revealed that 44,000 people have taken out a Debt Relief Order (DROs) since 2009. These DROs, often referred to as bankruptcy ‘lite’, have become increasingly popular with the younger generation. According to the Service, a quarter of the 44,000 are aged between 25 and 34.
Una Farrell from the Consumer Credit Counselling Service (CCCS) said: “[The young generation] faces a future of higher debts and fewer assets than older generations.” DROs are only available for those with assets of less than £15,000, without their own home and with savings of £300 or less.
"By the time people come to us for help with getting out of their debt problems, they have often been through a year of stress, worry and struggling to repay," Teresa Perchard from Citizens Advice told BBC News.
"These are only provided for people who have no way of being able to afford to repay their debts and it is helping them to make a fresh start," she added.