Insolvency Archive
Posted on June 23rd, 2010 in Insolvency.
Yes, that is an alarming statistic, indeed. 391 people everyday of the year will be declared insolvent or bankrupt in 2010, equivalent to 1 person every 51 seconds during the working day. This is a worryingly steep climb when you take into account that this figure was one in every 4.5 minutes in 2009, only a slight increase from 4.8 minutes in 2008. Source: http://www.creditaction.org.uk/debt-statistics.html
There has been much talk of late regarding the financial state of both individuals and businesses within the UK. And with stats to back up that talk, one that stands out and strikes terror into the current state of financial affairs is that of insolvency. It has unfortunately given plenty of ammunition to the merchants of gloom and doom, especially when you consider that there is no reason to believe that the number of recorded insolvencies will not continue to rise.
Actually, these figures only record formally registered insolvencies and don’t include those who have undertaken certain financial plans such as a DRO (Debt Relief Order) or IVAs (Individual Voluntary Arrangements).
So what is the origin of this alarming statistic? Well, in the current climate, people have been struggling to spend on necessities, never mind investing in luxury purchases. Homeowners are finding it tough to keep up with higher interest rates and resorting to credit cards. They then in turn have those to keep up with that those repayments also. Basically, far too many People have over-borrowed and are struggling to pay back their debt. Also, many of these people are business owners and are also feeling the pinch. If they’re not receiving the same level of incomings, how can they spend their normal allocated budget on promotion, staff etc.
One can be forgiven for feeling that there is no way out but the good news is that there is help available. The typical first port of call to resolve personal insolvency is a debt management plan. This is an informal, non legally binding agreement with creditors to reduce monthly debt repayments. Thousands of people turn to debt management plans each month to deal with their insolvency.
MoneySolve can offer free and confidential, expert advice. Call them now on freephone: 0800 040 7064.
Posted on June 9th, 2010 in Insolvency.
The latest batch of finance stats from Credit Action reveals that unemployment in the UK is at its highest level in 16 years. There are 2.51 million unemployed adults of working age in this country at present, something certainly fuelling our ongoing personal debt problems. Perhaps more alarmingly is the fact that over 750,000 of those people have been unemployed for more than a year.
These figures have been released alongside statistics showing that someone in the UK is declared bankrupt or insolvent every 51 seconds. With an average household debt £57,915, the loss of a job can be a devastating blow, leading to a complete inability to meet your monthly financial commitments.
If you’re struggling to make ends meet or just want expert, confidential debt management advice, get in touch with MoneySolve today on 0800 040 7064.
Posted on April 21st, 2008 in Insolvency.
Millions of British consumers are spending beyond their means in order to maintain a lifestyle they feel they ought to enjoy, according to a recent report.
A study carried out by Moneysupermarket.com has suggested that as many a s 15 million Britons are using borrowed money to fund what might be considered a middle class way of living.
Unsecured loans taken out for these reasons are believed to be worth close to £35 billion and could be causing thousands of families to experience serious debt problems and financial constraints.
For many people, their earning power does not match up to their expenditure and as a result debt management issues are becoming increasingly prevalent as the credit crunch unfolds.
"Consumers need to take immediate stock of their household budgets to identify the pressure points and seek money saving opportunities," said Richard Mason, managing director of insurance and home services at Moneysupermarket.com.
A report from the TDX Group recently suggested that the number of people entering individual voluntary arrangements in the UK is set to increase dramatically over the course of 2008.
Posted on April 9th, 2008 in Insolvency.
Prime minister Gordon Brown has been heavily criticised by opposition MPs for what has been described as his "economic incompetence".
Millions of people are suffering with serious debt management problems and the prime minister is largely to blame, according to the Conservatives.
The Tories have insisted that Mr Brown’s policies during his time as chancellor served to encourage consumers to borrow more money than they could realistically afford to pay back.
"Gordon Brown failed to prepare, he borrowed in a boom and allowed the debt bubble to grow. Now the whole country is paying the price," said shadow chancellor George Osborne.
Mr Osborne’s comments came in response to data from the Halifax that showed the average house price in the UK fell by close to 2.5 per cent over the course of last month.
Earlier this week, the National Association of Estate Agents called on the Bank of England to cut interest rates in order to bolster the flagging housing market.
Posted on March 27th, 2008 in Insolvency.
The personal loan market has been hit by the credit crunch, an expert has warned.
Samantha Owens, head of personal finance at Moneyfacts.co.uk, asserted that many lenders have hit borrowers with large one-off increases as well as smaller rises in the cost of borrowing.
Furthermore, she warned that the fact that Britons are willing to pay greater sums for credit shows there are problems.
Ms Owens stated that this "is yet another sign that we are all too dependent on borrowing and are willing to accept a higher rate to ensure we get the funds".
A recent study conducted by financial advice website unbiased.co.uk showed that during 2007, British people borrowed a further £11 billion.
David Elms, chief executive of the website, described last year as a "turbulent" financial period.
He added that consumer borrowing has reached a worryingly high level and that it is vital people seek to regain control of their outstanding credit commitments.
