UK personal debt reached ?1.46billion in March


The amount of personal debt in the UK increased  to £1.46billion in March according to 'Credit Action'. Credit card users are borrowing an average of £4,593 with consumer credit lending up to £300million. The average amount of household debt reached an average level of £8,796.

The continuing rise of personal debt has led some experts to predict a large increase in insolvency applications in 2010-11, with debt charities and advice services confirming a large jump in the number of queries received from the public about bankruptcy and insolvency concerns.

Small businesses are also counting the cost of unpaid invoices at a time when they are already struggling to manage their cash flow. Lynette French, Head of the Debt Recovery department at Wilson Nesbitt solicitors in Belfast, commented that:

"Small and medium size businesses inevitably suffer from the increase in debt throughout Northern Ireland and the rest of the UK. As households prioritise bills to pay off what debts they can, businesses in the service industry and others regularly find themselves at the end of the queue and are forced to chase up customers for payment for work done and goods provided, often for months on end, and often without any success.

"The good news is that debts can be chased for up to 6 years before they are lost forever and we strongly recommend that businesses, now more than ever, seek to improve their own economic standing by collecting on all the customer debts that have accumulated over the last years. Instructing a solicitor firm such as ourselves is cost effective and takes the stress out of debt recovery; customers also tend to take more notice when a solicitor has been involved to collect their debt."

Contact the debt recovery team by emailing debt@wilson-nesbitt.com .
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