Is Debt Management the only solution out of this debt problem?
25 per cent of the UK adult population are saying their financially out of control with a major number, around one million three hundred thousand people, admitting their finances are entirely unmanageable, a report by the insurer AXA says.
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 public interest Company that manages the register of judgements on behalf of the Lord Chancellor has reported that within England and Wales County Court Judgements rose by 17.4 per cent year on year to 223,519, its highest level since the beginning of 2007 and from the second quarter of 2008 this is a 25 per cent increase.
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 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.
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.
For consumers with debts up to 75,000 a SIVA, being the simplified IVA and would have only required that a simple majority of your creditors to accept the proposal for insolvency, was planned for April 2009.
For the time being the options available to the equity challenged British public who are struggling with debt and are not wishing to go bankrupt is either seeking debt management advice or some form or individual insolvency arrangement.
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 public interest Company that manages the register of judgements on behalf of the Lord Chancellor has reported that within England and Wales County Court Judgements rose by 17.4 per cent year on year to 223,519, its highest level since the beginning of 2007 and from the second quarter of 2008 this is a 25 per cent increase.
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 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.
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.
For consumers with debts up to 75,000 a SIVA, being the simplified IVA and would have only required that a simple majority of your creditors to accept the proposal for insolvency, was planned for April 2009.
For the time being the options available to the equity challenged British public who are struggling with debt and are not wishing to go bankrupt is either seeking debt management advice or some form or individual insolvency arrangement.
About the Author:
Enable Finance Ltd provide a FREE impartial and confidential debt management advice service to ensure our customers don't drown in debt. For our Corporate clients Enable Finance has a dedicated corporate recovery unit if your Company has cash flow or insolvency issues.
posted by Debt Consolidation Loan at
6:08 PM
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