Debt Free Direct, a company which offers advice to borrowers struggling with their lending, has trebled its profits in a single year as the market booms.
The company, which supplies Individual Voluntary Agreements (IVAs), says that the market is growing 140 per cent every year.
IVAs are agreements between a borrower and their creditors that allow some of the debt to be written off in exchange for a realistic repayment schedule on the rest.
There are now more than a million potential IVA customers in the UK waiting to be tapped, the company claimed.
“Whilst the debate continues with regard to exactly how many over-indebted consumers are struggling with significant debts, nobody can be in any doubt that the total is in excess of a million people,” said chief executive Andrew Redmond.
This is only set to increase if the Bank of England increases interest rates to keep a hold on inflation, as has been widely predicted.
Analysts have said that the currently low base cost of borrowing and consequently low priced homeowner loan deals are instrumental in keeping the debt burden affordable.
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