Head of Social Policy Teresa Perchard argues that the methods employed by some agencies are leading to even worse debt problems.
“All too often, vulnerable people on very low incomes with problem debts face a barrage of threats designed to bully, frighten and intimidate. This does nothing to encourage a sensible resolution of multiple debt problems and often leads to further borrowing and an increase in indebtedness.”
Intimidating tactics by creditors can lead already over indebted people to make the wrong financial decisions.
Tina Morris says: “A lot of our clients will pay the creditor who shouts loudest rather than paying the rent or council tax, which are more important payments really.”
It was the attentions of one collection agency that helped lead Mr Darch to his bankruptcy.
“I would quite happily have repaid a lot of my debt but I couldn’t afford to do it on the terms that they were insisting on. They weren’t prepared to negotiate.
"They moved me from “I want to pay” to “Sod off, I’m not paying, I’ll go bankrupt.”
With a consumer-led society, easily available credit and such pressures resting on the heavily in debt, even those want to take responsibility are left feeling bankruptcy is their only option. So perhaps he shouldn’t be feeling guilty after all.
Why do you think personal bankruptcies are rising? Have your say on our comments page.
You may also be interested in...
Listen to the experiences of the Bankruptcy Blogger.
Are you concerned that you may be in too deep? Take the FSA debt test.
One million "likely" to declare bankruptcy as overspend Britain struggles with £1trillion debt.
RELATED INTERNET LINKS:
The Consumer Credit Counselling Service
Going for broke: Why is bankruptcy on the increase?
