Many household budgets are being put under pressure by rising living costs, benefits cuts, pay freezes, redundancies and unemployment. Many people on low incomes find it difficult to cover their essential living expenses and this can lead to debt problems.

If you are on a low income and have got into debt, you are more likely to struggle with your debt repayments than people on higher incomes, as you will have little left over each month after paying your essential living expenses.

Being on a low income can lead to serious debt problems. We are finding that many of the people to whom we recommend bankruptcy are earning less than the national average wage.

The facts

• 75% = the percentage of clients recommended bankruptcy who earn less than the average wage.
• £19,000 = the average wage of these clients (the UK national average is £25,900).
• 43 years = the time it would take for the average bankruptcy client to repay their debts.
• £31,000 = the average debt of a CCCS client recommended bankruptcy.

About bankruptcy

Bankruptcy can help you to make a fresh start by clearing debts that you would never be able to pay off. It is a form of insolvency. This means your unsecured debts must outweigh your assets, such as property or vehicles.

Bankruptcy is a big step to take and we will only recommend it when all the other possibilities have been considered.

Bankruptcy help

If you are considering bankruptcy, you must first get expert advice to make sure it’s the right solution for you. Bankruptcy has serious consequences and for many people, it is not the best option. CCCS Debt Remedy, our online debt counselling service, will be able to tell you if bankruptcy is the right debt solution for you. If it is, our bankruptcy support team can help you through the whole process.