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Increase in bankruptcies predicted

The New Year is likely to see an increase in bankruptcies, according to recent comments.

Ian Boden-Smyth, spokesperson for the UK Insolvency Helpline Debt Advice Service, said that rising unemployment "especially in the public sector" will lead to a lot more bankruptcies and IVAs (Individual Voluntary Arrangements).

"At the moment there hundreds of thousands people doing debt management which is a bit like pushing it under the carpet," he added.

"You can't see your debt and you're confident someone else is dealing with it, but really the debts aren't going anywhere, they're just being managed by a third party."

The comments follow research conducted by insolvency trade body R3, which found that 38 per cent of people are struggling to make it to payday each month.

Credit card payments were found to be central to people's struggles with 33 per cent stating that they experience financial struggle as a result of repayments.ADNFCR-1898-ID-800319116-ADNFCR

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