More bankruptcy advice to be needed over next 2 years, says Credit Action exec

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More bankruptcy advice to be needed over next 2 years, says Credit Action exec

Tue 21st Sep 2010

A representative from Credit Action has suggested the number of people seeking insolvency advice will go up gradually over the next two years.

Richard Talbot, director of the money education charity, suggested that many people are still living beyond their means and utilising payday loans and pawnbrokers when they get into financial difficulties.

In his opinion, the number of insolvencies will steadily climb over the next two years, with the lack of a savings culture in the UK being a major factor in this pattern.

He explained that people should put some money aside in case an unexpected expense needs to be paid, such as a broken washing machine or a car's MOT.

"As an organisation we would promote people to try and save [and] at least have some rainy day savings to give them some buffer," said Mr Talbot.

His comments follow a study by R3, which indicated that more than 40 per cent of British adults either regularly or occasionally struggle to reach their next payday with cash in the bank.

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