Are we in the UK drowning in Debt? According to the insurer AXA, some 11.6 million people (25 per cent of the adult population) are said to be struggling financially with a significant number, around 1.3 million people, admitting their finances are entirely out of control.
AXA reported that mounting credit card bills are now putting just close to 3.8 million people under intense financial pressure and a further one million of UK borrowers 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.
In England and Wales CCJs rose by 17.4 per cent year on year to 223,519, their highest level since the first quarter of 2007, according to figures published by the Registry Trust, the public interest company which manages the register of judgements, orders and fines on behalf of the Lord Chancellor. This represents an increase of 24.8 per cent from the second quarter of 2008.
Personal Insolvencies within England and Wales rose to just of twenty seven thousand in quarter 3 of 2008 which represents an 8.8 percent increase from just less that 25,000 in the previous quarter.
Bankruptcies have increase by 12 per cent from 15,500 to just over 17,000 in the second part of the year and personal individual voluntary arrangements (IVAs) are too up 3 per cent from the three months previous.
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.
A simplified version of the IVA, for consumers with debts up to 75,000 and that would only require approval by a simple majority of creditors rather than the 75 per cent majority under normal IVAs, was due to be introduced in April 2009.
UK Home Owners unable to consolidate their debts using equity and are not wishing to go bankrupt have for the time being limited options between an IVA and a Debt Management Program.
AXA reported that mounting credit card bills are now putting just close to 3.8 million people under intense financial pressure and a further one million of UK borrowers 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.
In England and Wales CCJs rose by 17.4 per cent year on year to 223,519, their highest level since the first quarter of 2007, according to figures published by the Registry Trust, the public interest company which manages the register of judgements, orders and fines on behalf of the Lord Chancellor. This represents an increase of 24.8 per cent from the second quarter of 2008.
Personal Insolvencies within England and Wales rose to just of twenty seven thousand in quarter 3 of 2008 which represents an 8.8 percent increase from just less that 25,000 in the previous quarter.
Bankruptcies have increase by 12 per cent from 15,500 to just over 17,000 in the second part of the year and personal individual voluntary arrangements (IVAs) are too up 3 per cent from the three months previous.
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.
A simplified version of the IVA, for consumers with debts up to 75,000 and that would only require approval by a simple majority of creditors rather than the 75 per cent majority under normal IVAs, was due to be introduced in April 2009.
UK Home Owners unable to consolidate their debts using equity and are not wishing to go bankrupt have for the time being limited options between an IVA and a Debt Management Program.
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 business recovery unit if your business is facing debt problems.
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