Some borrowers will never get out of the red

11/09/2009

Almost a third of people who ask for debt help will never pay off their debts, unless they earn more money according to the Consumer Credit Counselling Service.

It's a statistic that debt solutions firm, EuroDebt, knows only too well. The company’s director, Kevin Still, says they now see clients with unsecured debts over £100,000 sometimes with more than 20 creditors.

The firm says that could be down to a mixture of irresponsible lending and borrowing. But those who are unable to ever pay off their debts fall into two camps.

Some have had a change in circumstances and so can't meet their contractual payments anymore – and those that are so deep in debt there's no way out to ever pay it back in a realistic timeframe.

EuroDebt predicts more and more will cut their losses and turn to bankruptcies and IVAs.

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