It has recently been reported that the number of individuals entering a form of insolvency in England and Wales has fallen to its lowest level since the autumn of 2005.
According to figures released by The Insolvency Service, 20,826 individuals became insolvent between January and March of 2015; representing a decline of 18.6% on the same time last year. Specifically, Individual Voluntary Arrangements (IVAs) fell by 23.5%.
However, debt charities have warned that personal debt dangers still remain due to rapid growth in the levels of personal borrowing and a worry that the increased consumer credit will be followed by growing numbers of people falling into unmanageable debt.
These concerns are borne out by figures released at the beginning of the year, revealing that UK citizens ran up their highest level of new debt in November 2014, which represented a seven-year high. That month’s borrowing on credit cards, loans and overdrafts hit more than £1.25bn, which was the biggest rise since February 2008.
Consequently, it has been suggested that there could be a significant personal debt problem looming as households were being forced to borrow to fund living costs. Once again, if and when a rise in interest rates occurs, it is predicted that many more people will struggle with the repayments on their borrowing.
If you are concerned about your personal debts, a confidential discussion with an experienced and qualified specialist to talk through the range of options available may well be the best course of action. Please contact us if you would like an initial consultation, free of charge.