Rise in people seeking debt options “worrying sign of households under strain”
Money Advice Trust comments on June 2023 insolvency statistics.
The Money Advice Trust, the charity that runs National Debtline and Business Debtline, has responded to the latest insolvency statistics which show that the number of Debt Relief Orders in June 2023 was up 21% compared to June 2022.
Breathing space registrations also saw an increase, rising by 37% in June 2023 compared to June 2022. Last month there were 7,825 registrations for Breathing Space, of which 111 were on the grounds of mental health.
Jane Tully, director of external affairs and partnerships at the Money Advice Trust, the charity that runs National Debtline, said:
“Today’s figures are reflective of the impact that high costs are having for struggling households.
“Debt Relief Orders provide a vital route out of debt for people experiencing financial difficulty, while Breathing Space gives people who have fallen behind on repayments a much-needed pause on creditor action while they seek advice for their debts.
“Nevertheless, these figures are a worrying sign of households under strain, with more people facing little option but to seek a solution for their debts.
“Insolvency options should not be undertaken lightly and it is crucial that people receive free, impartial debt advice before deciding the best course of action to take.
“I would encourage anyone worried about their finances to seek free and impartial debt advice from a charity-run service like National Debtline.”