The number of insolvencies applied for by British consumers is increasing, according to new figures.
Price comparison site uSwitch has released figures indicating that the number of individual insolvencies has risen 1.7 per cent since the last quarter of 2007. According to the company, just under 300 people declare themselves bankrupt each day, and 74 homes are also repossessed daily. With such numbers suggesting increasing financial difficulties for many homeowners, increasing numbers could find that they might benefit from consolidation loans.
Should current rates and conditions persist, as many as 104,000 people could become insolvent this year, according to uSwitch's figures. Factors impacting on people's ability to service their debts are identified as the increasing cost of living, estimated to have risen by nine per cent over the last year. Such costs are not being matched by salary rises which have been hiked by only 3.4 per cent in the same timeframe.
The company adds that consumer debt has reached 1.4 trillion pounds and increases by 1 million pounds every five minutes. With so much debt being accumulated and not enough uptake of debt consolidation and similar moves to address the issue, uSwitch asserts that rising insolvency figures are "inevitable".
Ann Robinson, director of consumer policy at the price comparison and switching service, says: "It's worrying that so many people are resorting to individual insolvencies, be it an IVA or bankruptcy, to resolve their personal debt problems. These measure should always be the last resort for anyone with financial problems as they have a very serious impact on people's credit histories and their ability to borrow in the future. In the case of bankruptcy, it could also impact on employment prospects."
Those who are aware of high debt levels owed to a number of lenders keen to avoid insolvency might find that a consolidation loan helps to alleviate the strain on their finances. Such loans can make debts easier to manage by combining multiple requests into a single monthly payment, helping consumers to regain their financial feet.
Ms Robinson asserted that the costs impacting upon Brits' pockets were rising in many different areas of life, from home heating energy to mortgages and even fuel. "If people find themselves in financial difficulty the worst thing they can do is ignore the problem and hope it goes away," she states. "It won't. Banks have a duty to help people in financial hardship and free debt advice is readily available from organisations such as the Consumer Credit Counselling Service, National Debtline and Citizen's Advice. I would strongly urge people to start taking action before they reach financial breaking point."
Last summer, one industry expert observed that a worrying trend was developing whereby bankruptcy was losing its stigma. Duncan Philp, a consultant for Macbeth Currie, stated that many young entrepreneurs considered early bankruptcy to be a "badge on their collar" - a theme matched by their failure to control their personal finances, for instance by taking out a personal debt consolidation loan in good time to address a difficult financial situation.
Related Articles
Borrowing Levels 'are High'
By: Abbi Rouse | 18/12/2007 | Finance
Britons are borrowing an increasing amount of money, new research shows.
Lenders Need To Help Those With Trouble Debt Says Mind
By: Steve Smith | 02/06/2008 | Debt Consolidation
Mind, the UK mental health charity, has suggested that lenders need to act in a responsible manner when dealing with people who have problematic debts.
About Half Of Britons Revealed To Be Worried About Money
By: Abbi Rouse | 28/03/2008 | Debt Consolidation
People are becoming increasingly worried about their finances, new research shows.
Britons 'should Invest Time' Into Reducing Financial Pressures
By: Abbi Rouse | 29/01/2008 | Finance
Those consumers struggling with their finances following the festive period should look to switch to more competitive deals, it has been suggested.
Borrowers Advised To Be Active In Repaying Credit Card Debts
By: Steve Smith | 08/04/2008 | Debt Consolidation
Britons may find that their access to credit is diminishing, a new report shows.
Report Shows Millions Of Brits Plunged Into Fuel Debt
By: Abbi Rouse | 28/04/2008 | Finance
A newly-published study has shown that as many as 6.8 million Britons are indebted to their energy suppliers, with the recent price hikes enacted by all major providers likely to further exacerbate the financial strain of running a home.
Study Says Debt Still Taboo Among Britons
By: Abbi Rouse | 07/05/2008 | Finance
According to a report published by advisory service provider Saga, debt levels are one of the least commonly discussed areas of personal finance among Britons.
USwitch Reports Further Utility Bill Rises For Homeowners
By: Mark Dawson | 22/05/2008 | Debt Consolidation
Despite Britain's six largest energy suppliers increasing the cost of their tariffs only a few months ago, consumers could be set to find themselves coming under further financial pressures, it has been suggested.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
I filed for bankruptcy on my student loans in 1993 ...
By: zulie515 | 20-07-2008
I filed for bankruptcy on my student loans in 1993, now I getting harrassed by the U.S.Dept. Of Education saying that my student loans were not discharged, I'm so, so upset.
Luigi???
By: super awesome mega 64 fan smash | 20-07-2008
helo im having trouble unlocking luigi on smash bros 64 can you tell me how please i want him bad cuz i luv luigi please help
Grand Marquis Problem
By: lilhakim91 | 20-07-2008
How can I put coil spring boosters in the front of my 2001 grand marquis. They fit without any trouble in the rear but they are harder in the front so what do i need to do?
How do u tell some one your falling for them??? please help!!!!!!!?
By: joakim wife | 20-07-2008
How do u tell some one your falling for them??? please help!!!!!!!?
this guy told me he liked me the other day and than i saw him today and he wouldnt talk to me like he use to and i really like him but i dont know what to do how can i tell him what i should have said yeasterday?
Just received a inheritence check for 35,000, want ...
By: Moe | 20-07-2008
Just received a inheritence check for 35,000, want to know the best investment for it?
I am looking for 4 chinese refineries in china ...
By: Mike Heinrich | 20-07-2008
I am looking for 4 chinese refineries in china their registration number as well as customer number
Q&A Powered by:
Latest Debt Consolidation Articles
Responsible Borrowing Starts Young
By: Christian Ward | 26/07/2008
Why has ‘debt consolidation’ become such a common phrase nowadays? Unfortunately, the answer’s straightforward – it’s because debt has become a way of life for so many. It’s a sorry reality for even the youngest adults in our society, as illustrated in a recent publication from Rainer, the national charity for under-supported young people.
Debt Consolidation Loans Can Help Ease the Pressure
By: Christian Ward | 26/07/2008
Debt. It’s something we are reading and hearing about more often every day that goes by. With the UK’s debt currently over £1,430bn it is hardly a surprise that more of us are feeling the squeeze and are in need of help.
Unsecured Debt Consolidation Loans for Tenant: Plan for a Debt Free Life
By: Richard Shephard | 26/07/2008
Clear all your pending debts with unsecured debt consolidation loans for tenant.
Get a Government Grant - Get Free Government Grants Online and Get Debt Relief
By: Bryan Burbank | 25/07/2008
A Government Grant can help you get out of debt and put you on the road to financial freedom. Now more than ever we are finding it hard to make our credit card payments and with gas approaching $5.00 a gallon we are using and racking up more credit card debt than ever. It is best if you can eliminate the debt you have so that you do not have to have the extra stress of worrying about making your monthly payments.
Find yourself Debt Relief With a Government Grant
By: Bryan Burbank | 25/07/2008
Getting a Government Grant can be a great way to eliminate debt and get you on the road to financial freedom. Many people are looking for a way to get out from under the problem with having too much debt and not being able to pay the minimum monthly payments. The Government offers many types of grant programs to help people in different financial situations and it is important to have the right information so that you know where to apply and how to obtain a Government Grant to help you get debt
Credit Counseling in Pennsylvania
By: Ronnica Rothe | 25/07/2008
Much like the rest of the country, Pennsylvania residents are struggling with their credit card debt. As if mounting debt were not enough, gas and food prices have gone up exceeding inflation. This means that more Pennsylvanians are relying on credit cards to make ends me than ever.
Wipe Out Debt From Credit Cards
By: Geoff Hibbert | 25/07/2008
A guide to the most economically effective way to pay of card debts.
Helpful Tips for Eliminating Debt
By: Christina Costa | 24/07/2008
Getting out of debt can seem tricky, but with a few helpful tips you can be on your way. Everyone likes to spend but when it comes time to pay back, they are not that enthusiastic. Get started now at eliminating your debt, before it gets any worse!
Finance 
