Abacus Daily Debt News

KPMG: Many are still experiencing serious financial trouble

Many people in Britain are experiencing financial difficulties, in spite of the fact that interest rates have reached record lows.

This is according to director of personal insolvency at KPMG Chris Nutting, who noted that the company’s research has revealed that more than 223 people are opting to petition for bankruptcy each day.

"The harsh reality is that many people are still living beyond their means," he said, adding that history has shown that this statistic is going to climb for some time after the recession is over because of tax hikes and decreased public sector expenditure.

"A lot of people will need to take drastic action to resolve their financial problems," Mr Nutting continued.

And recent figures from R3 indicated that 916,000 people in the UK are handling their debt issues by themselves, without seeking professional help, while a further 574,000 have been in informal contact with creditors for assistance.

By Sarah Adie