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The TDX Group, a provider of analytics-based debt management is warning of a 50% increase in people seeking debt solutions in 2009. Furthermore, the group anticipates a doubling of debtors who have no realistic hope of recovery thanks in part to bad advice and wrong choices.

Also, the TDX Group predicts demand for debt solutions amongst homeowners and higher income earners will continue to rise by 30% in 2009 – so many people with a lot of secured debt options will find themselves in need of bankruptcy, debt management or IVA solutions needlessly.

Furthermore over the last six months it has seen a marked trend of lower disposable incomes in people experiencing financial difficulties, which means an increasing number of debtors will find they don’t have enough disposable income to get themselves out of trouble.

Mark Onyett, chief executive of the TDX Group said: “The combined effects of economic factors, rising unemployment and the continued squeeze on household disposable income, plus fewer opportunities to refinance debts or rely on equity release will push more consumers into seeking formal debt solutions and insolvency.

“Sadly, many consumers, particularly those running into debt problems for the first time, find the increasing range of debt solutions confusing. In our survey of consumers, 91% admitted taking the advice of the first adviser they approached. But because many advisers offer just one type of solution, consumers may not be getting the right advice for their circumstances."

If you have been offered a 'debt solution' that you are confused or mistrusting of, just say no. Many debt solution 'specialists' out there right now are sharks looking to cash in on the recession. If you need finance help, go to a fully regulated adviser. They may not be able to give you all the answers, but you can be assured that their answers will be truthful and will not make your situation even worse.

SOURCE: TDX Group, 13/02/09

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