People with debt problems `should seek help quickly`

25 June 2009

Consumers who find themselves experiencing debt problems should not delay seeking help, an expert has said.

According to Jim James, north-east regional chairman of insolvency trade body R3, it is crucial that such people get assistance as soon as possible, the Journal reports.

He said: "If people are worried about their finances, it`s more important than ever not to delay seeking professional advice and to make sure they get it from the right people."

Mr James went on to state that licensed insolvency practitioners and debt charities are two potential sources of information.

He also pointed out that a new insolvency procedure called a Debt Relief Order (DRO) was introduced earlier this year.

Aimed at people who have a very low income and little or no assets, DROs are available to certain consumers with unsecured debts of under £15,000.

Meanwhile, an analysis of Insolvency Service figures conducted earlier this month by accountancy firm Wilkins Kennedy suggested that female consumers made up 55 per cent of all the people who went bankrupt last year.

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Gregory Pennington is a member of DEMSA whose code of conduct is approved by the Office of Fair Trading.