UK Drowning in Debt, Is Debt Management a Way Out?
A report out from the UK Insurer AXA suggests the UK public is drowning in debt with 11.6 million people (25 per cent of the adult population) saying are under pressure financially with a momentous number, around one million three hundred thousand people, admitting their finances are entirely unmanageable.
The report suggests that over 3.7 million people are reported to be struggling to cope with mounting credit card bills and just over a million people have borrowed too much money and are now struggling to keep up their repayments.
County Court Judgements CCJ's issued to the personal consumer has increased to their highest level since the beginning of 2007 and half a million home owners with mortgages where threatened with repossession or court action.
The Registry Trust, the public interest company which manages the register of judgements published within England and Wales; stated that CCJs rose by 17.4 per cent year on year to 223,519, their highest level since the first quarter of 2007. This is 25 per cent increase from the second half of 2008
Individuals entering into insolvency within the borders of England and Wales are on the up by nearly 9 per cent or just over twenty seven thousand in the 3rd part of 2008 compared with the previous quarter.
17,341 people went bankrupt, which has shot up 12.1 per cent from 15,463 in the second quarter of the year, and 9,746 individual voluntary arrangements (IVAs), which is up 3.3 per cent from the three months before.
The sharp rise in corporate and individual insolvencies merely reflects the treacherous economic conditions people and businesses continue to face through this deteriorating recessionary backdrop; making an even sharper rise in both business and personal insolvencies look inevitable in the coming quarters of 2009.
It was hoped that the planned Simplified Individual Voluntary Arrangement (SIVA) that had been planned to be implemented early next year would offer some way out, however this has been abandoned by the Insolvency Service.
Where an IVA needed 75 per cent of creditors to accept the proposal for insolvency a Simplified IVA or SIVA only required that a majority accept the terms. The SIVA was intended to be launched next year with a creditor cap of 75,000.
For the time being the options available to the equity challenged British public who are struggling with debt and are not wishing to go bankrupt is either seeking debt management advice or some form or individual insolvency arrangement.
The report suggests that over 3.7 million people are reported to be struggling to cope with mounting credit card bills and just over a million people have borrowed too much money and are now struggling to keep up their repayments.
County Court Judgements CCJ's issued to the personal consumer has increased to their highest level since the beginning of 2007 and half a million home owners with mortgages where threatened with repossession or court action.
The Registry Trust, the public interest company which manages the register of judgements published within England and Wales; stated that CCJs rose by 17.4 per cent year on year to 223,519, their highest level since the first quarter of 2007. This is 25 per cent increase from the second half of 2008
Individuals entering into insolvency within the borders of England and Wales are on the up by nearly 9 per cent or just over twenty seven thousand in the 3rd part of 2008 compared with the previous quarter.
17,341 people went bankrupt, which has shot up 12.1 per cent from 15,463 in the second quarter of the year, and 9,746 individual voluntary arrangements (IVAs), which is up 3.3 per cent from the three months before.
The sharp rise in corporate and individual insolvencies merely reflects the treacherous economic conditions people and businesses continue to face through this deteriorating recessionary backdrop; making an even sharper rise in both business and personal insolvencies look inevitable in the coming quarters of 2009.
It was hoped that the planned Simplified Individual Voluntary Arrangement (SIVA) that had been planned to be implemented early next year would offer some way out, however this has been abandoned by the Insolvency Service.
Where an IVA needed 75 per cent of creditors to accept the proposal for insolvency a Simplified IVA or SIVA only required that a majority accept the terms. The SIVA was intended to be launched next year with a creditor cap of 75,000.
For the time being the options available to the equity challenged British public who are struggling with debt and are not wishing to go bankrupt is either seeking debt management advice or some form or individual insolvency arrangement.
About the Author:
Enable Finance Ltd provide a FREE impartial and confidential debt management advice service to ensure our customers don't sink in debt. For our Corporate clients Enable Finance has a dedicated corporate recovery unit if your business is facing debt problems.
posted by Debt Consolidation Loan at
5:50 PM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home