Struggling consumers `taking on more debt to bridge the gap`

Many people are taking on additional debt to `bridge the gap` in their finances until payday, according to R3 President Frances Coulson.

Commenting on the latest insolvency figures (which showed a continued fall in the number of personal insolvencies in England and Wales) Ms Coulson said that this "can only be a good thing", and that 80% of people have changed their shopping habits in the last year.

But she pointed out that the insolvency figures don`t account for people who are struggling with debt but are not actually in formal insolvency procedures. She added: "What we do know is that on average, people tend to start to struggle 20 days after payday, with many `bridging the gap` by taking on more debt, which can easily snowball."

An expert at debt management company Gregory Pennington commented: "Although insolvency levels are falling, there are a lot of people who are struggling with debt nonetheless. Some may have made an informal repayment arrangement with their lenders, such as a debt management plan, but others will be struggling without seeking help. It`s important that those people take action and get the help they need before their finances get any worse.

"An expert debt adviser can help borrowers find the best way of making their debts affordable and getting back on top of their finances."