A recent report from Debt Management Today shows that industry experts expect the number of people faced with declaring bankruptcy will skyrocket into 2009.

"’Debt being seen as a way of life' is the main cause of personal insolvency according to our members and this will be a hard psychological deadlock to break,” said a representative from trade body R3 in the Debt Management Today report. “Seeking financial advice early from a qualified source such as an insolvency practitioner is the best way to achieve a workable solution."

A study conducted by R3 further indicates that 70 per cent of experts in the industry predict increasing numbers of people forced into bankruptcy within the next year as a result of personal debt. The survey results also suggest that over 68 per cent of industry insiders feel that this increase will occur within the next six months, and a third of experts feel it will occur within just three months, Debt Management Today reports.