You are here: Home - Uncategorized -

Going bust ‘a growing problem’

Written by:

Official figures reveal that a record number of people in England and Wales became insolvent in the third quarter of the year (July-September 2006), 55% higher than in the corresponding period during 2005.

The Insolvency Service, a Government body, said that during the period 27,644 people went bankrupt or entered into an Individual Voluntary Arrangement (IVA) with their creditors to manage their debts.

Freelance analyst Colin Perry said that availability of credit was partly to blame for the problem. “It is just too easy to get into massive debt today,” he said. “The credit card companies, for example, have massive advertising budgets and their efforts are pretty successful judging by the number of cards in use.

“But people have to use these products with a measure of self-discipline and, sadly, this seems to be lacking amongst a substantial part of the population.”

Banking group HSBC, which provides many UK current accounts to consumers, also warned that the number of people going insolvent in the UK is a growing problem and was “unlikely to abate in the medium term”.

Despite this, the bank’s performance in the three months to September was better than in 2005, although underlying revenue growth was slower than in the first six months of the year.




Related Posts


Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • RT @YourMoneyUK: A robo-adviser or a traditional platform? What's the best home for your kid's ISA? @jofaithy -
  • RT @Defaqto: Over two-fifths of travel insurance policies offer no protection for airline failure, our research shows. Only around half (48…
  • Over two-fifths of travel insurance policies offer no protection for airline failure, our research shows. Only arou…

Read previous post:
Pension schemes lose members

The number of people belonging to a pension scheme has dropped amongst the UK’s 35.4 million workforce, according to the...