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Debt Snapshot reveals record numbers in financial distress

The recent Personal Debt Snapshot from insolvency trade body R3 reveals some worrying figures, like the fact that six million people are behind on some of their payments and bills. That`s an increase of two million in just three months.

It also indicates that eight million people will use their overdraft this month - and that two million of them will do so without first having their overdraft authorised.

Five million admit to being worried about losing their jobs, while 15 million are saving less money than they used to.

In all, the press release states, `The number of people experiencing financial distress has increased to the highest level recorded by R3`s Personal Debt Snapshot.`

There is some good news, however. 19% of people are setting a budget these days. Frances Coulson, R3 President, says: "This is definitely a positive step as, for those who are struggling with their debts, a budget is a key tool which allows you to clearly compare how much money you spend against your income. This will help to identify if any savings can be saved and where."

A spokesperson for the IVA Advisory Centre commented: "As Ms Coulson has emphasised, one thing people can do in tough times is improve the way they manage their finances. Some people will find they can actually afford to overpay their debts, helping them get out of debt faster and potentially saving them more than they`d expect in terms of interest."