MANCHESTER, England, April 20 /PRNewswire/ -- The latest Credit Action figures reveal that an estimated 390 adults will become insolvent each day in the UK. The figures remain incredibly high, despite the formal end of the recession during the final quarter of 2009.
Debt advice specialists at MoneySolve are not hugely surprised by the statistics, commenting that, "The recession is officially over, yes. But the effects of the recession will go on for quite some time. There's still very high unemployment and consumer confidence has not fully recovered."
A number of personal insolvencies can be attributed to the unemployment statistics, which are not being helped by the fact that more than 1800 people reported being made redundant every single day in the three months to the end of January 2010. MoneySolve warns that unemployment is a cause for potentially difficult finances.
"If you suddenly lose your income, you can find yourself in a position where you are unable to meet your financial commitments. This can result in relying on credit and ending up with troublesome debts. However, this need not instantly mean bankruptcy anymore, thanks to the alternatives such as the Individual Voluntary Arrangement. We provide IVA advice and information to debt ridden consumers on a daily basis and, while the IVA is not suitable for everyone, in some cases it is an excellent solution to unmanageable debt problems."
In 2009, there were more than 130,000 personal insolvencies in the UK.
SOURCE MoneySolve
Share this article