Britain's personal debt is growing by £1 million every 4 minutes, and today as many as 300 people will be declared bankrupt or insolvent. House repossessions are expected to increase from 17,000 in 2006 to 42,7000 in 2009.
The effects of debt on your personal life can be catastrophic. Whether the debt is personal or business related, the stress and fear engendered can precipitate family break ups, mental illness and even suicide.
The Samaritans say that the biggest cause of stress is money (51%), and the Legal Services Research Centre have found that 89% of debt clients reported worrying about their debts most or all of the time. 48% said the impact on their health was `great' and 43% that their health was effected `to some extent'.
What is most worrying, is that 60% of debt clients had received medication, treatment or counseling, and 45% said that being in debt had had a negative effect on their relationships with their partners.
The problem may be particularly acute for start up businesses, who may also have the pressure of young families, rising mortgage costs, and not enough time to dig themselves out of the mire.
What can be done to help people who are suffering in this way?
The first thing is to get free, confidential and impartial advice on the best options available. Many people are unaware of the choices open to them when they are struggling with debt. It may be that bankruptcy, or an Individual Voluntary Arrangement (IVA) is the answer, but it is worth exploring the alternatives.
Even following a bankruptcy, getting professional help with liaising with creditors can bring about reduced interest on debts - in one case, a business recovery firm saved a client £43,000 by agreeing a different basis under case law with creditors.
Dealing with debt is not just a practical issue, as the statistics above show, but an emotional one too. This is why seeking out an empathetic as well as skilled team of advisers is important. The people who can provide advice and help are not there to judge - their job is to help find solutions. Why not think about using, for example, a firm who have an all female staff? Whoever you use, they should provide at the initial meeting, independent, free, confidential and impartial advice, without obligation to use their services.
