Personal Insolvencies To Rise In 2012posted on 14 November 2011 | posted in General Category | ( 0 ) CommentsDebt Advisers at Integrity Financial Services Limited one of the UK'S most respected debt solutions companies, have announced that the UK is sitting on a debt time bomb and personal insolvencies will rise in 2012. Bankruptcy will be the most effective way forward for many people as its quick and efficient and far less costly than IVAs and DMPs respectively. It will also appeal more to those who own homes in negative equity as they will be hit hard when interets rates rise. Personal insolvencies could increase by as much as 20% in the near future as a result of job cuts, interest rate rises and the cost of living increasing, meaning the UK is heading for a personal finance meltdown and debt storm. We could see in total approx 500,000 public sector jobs, which will significantly affect the level of unemployment in UK. This, in turn, will lead to an increase in personal insolvencies. The cost of living is on the rise as basic household goods and food product prices are increasing all the time. Added to this are energy companies who are turn up the heat on household bills with bill rises now common place. We will also see interest rates rise at some point in 2012 and this will have a huge effect on people's ability to keep up mortgage repayments, meaning an estimated 7 million homeowners could end up facing repossession on their homes.
"On a daily basis we are seeing the number of personal bankruptcies increase and in some areas of the UK this is going up at an alarming rate. "The increases in bankruptcy fee's have were not welcomed and this year there will have been an approximate 46% rise in the fee, to £700 per person. However people realise that they have a responsibility to pay something back to the creditors, and this will not be an issue with our clients. People have already adapted to this fee rise and it is now not an issue anymore." "There is a sharp increase in the number o fpeople in IVA's (individual voluntary arrangements) that are not happy and are terminating them, and this can be down to a number of factors such as high fees, repayments, lack of advice and support, and in some cases mis-selling which is very common. This in turn is leaving those people with no debt solution, so they are turning to us to help them and put them through bankruptcy knowing that this will finally solve their financial situation". Without a doubt 2012 will see a rise in personal insolvencies in the UK with the debt storm just around the corner... (Author: Darren Perks) Share this blog entry:
|
|||
Comments ( 0 ) - Add Your Comment |
|||
|
| |||||||
©Integrity Financial Services Ltd 2011 | ||||||||
