Loan Debts See Insolvencies Soar

Mon, 10 May 2010

New figures from the government’s Insolvency Service have revealed that personal insolvencies in England and Wales are at an all time high. Following nine consecutive monthly increases, the first quarter of 2010 saw 35,682 personal insolvencies in England and Wales – a 17.9 per cent increase on the same period of 2009. Bankruptcies accounted for most of the insolvencies, at 18,256, compared with 11,782 individual voluntary arrangements (IVAs) and 5,644 debt relief orders. Debt relief orders were only introduced in April so cannot be compared with the first three months of 2009, though the number of IVAs saw a yearly increase of 20.1 per cent. Though bankruptcies fell by 10.7 per cent compared with the first quarter of 2009, they were up by 7.3 per cent on the previous quarter.

Partner at UK insolvency practitioners Tomlinsons, Alan Tomlinson, said the figures are not entirely a negative sign, instead demonstrating that borrowers are looking to manage their debts rather than allow them to escalate. Whether in debt from personal loans, credit cards, overdrafts or any other form of credit, Mr Tomlinson said borrowers with large debts had only been able to manage because of the low interest rates, especially in light of the strict lending criteria adopted by banks and lenders.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

 

 

Income Protection Insurance
Get an instant quote with the award winning company

Paying Too Much?

7 out of 10 people are paying too much for their mortgage. To find out if you're one of them click here or fill out a FREE no obligation enquiry form