Latest Debt News
Credit card offers for former bankrupts
07/02/2006 13:13:00
A partner at insolvency specialist Begbies Traynor, Joanne Wright, has indicated that credit card companies and a change in bankruptcy laws have resulted in the 57 per cent increase in personal insolvencies recently reported by the Department of Trade and Industry.
Ms Wright suggested that the new laws make it less of a daunting experience to go bankrupt, while credit companies are unashamed to offer credit to anyone, the Lancashire Evening Post reports.
She said: "People realise they can declare themselves bankrupt and could be free of debt within two or three months.
"I have heard of credit companies ringing people on the same day they have been discharged to offer more credit."
Yet she also acknowledged that the nation's debt levels were also largely down to individuals who are simply mismanaging their money.
"People are not looking at their problems - they are borrowing more and switching debts between credit cards because they have become so used to juggling debts.
"It is only when their cards and loans are maxed they realise they have nowhere left to go."
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