Adverse credit problems hit record high

Thu, 11 Aug 2005

People in England and Wales are facing the highest levels of adverse credit problems in three years, it has been found.

Personal bankruptcy figures are soaring with an increase of almost 75 per cent since 2003, Experian found.

The global information solutions company reported that there were 480 new bankruptcies in June 2005. This is compared to 275 in the same month in 2003.

Nearly 2,500 people filed for bankruptcy in the first half of the year, over 500 more than the first six months.

The Enterprise Act, which was introduced in April 2004, cut the average length of time until discharge from three years to just one year noted Experian's director of consumer affairs Jill Stevens.

"Although, for some, bankruptcy is the best solution, it is important that people do not see it as the easy option to rid themselves of their debts," she warned.

Ms Stevens warned that people with adverse credit problems should consider all their options before filing for bankruptcy, as it has repercussions that will affect the debtor for many years after the discharge.

There are many organisations that can offer help and assistance for people with adverse credit problems. "I would strongly urge them to ask for help as soon as they can and not to let the situation get worse," Ms Stevens noted.

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