UK Drowning in Debt, Is Debt Management a Way Out?
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.
The insurer goes on to say that over a million UK residents have borrowed too much credit and are now struggling to keep up their repayments, with less than 4 million struggling to manage their credit card bills.
500,000 people have been threatened with the bailiffs or repossession and consumer county court judgements (CCJs) has reached their highest level since the start of 2007′s third quarter.
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.
Bankruptcies and Individual Voluntary Arrangements (IVAs) have increased 12 and 3 percent respectively.
The credit crunch could be blamed for the increase in corporate and personal insolvency throughout 2008, however, its patently obvious that further failures are going to be compounded by the recession throughout 2009.
Unfortunately the planned Simplified Individual Voluntary Arrangement SIVA, due out next year 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.
The British borrower drowning in debt not wishing to go bankrupt really should consider both the individual voluntary arrangement or a more informal debt management program to help get your debt problems under control.
