The Insolvency Service have revealed that an average of 370 people per day were declared insolvent. This is a raise of 0.7 on 2009, and the highest since 1960.
Steve Law, president of the insolvency trade body R3, said: “Unfortunately, for those that are struggling with debt the worst may not be over. Inflation, the rise in the cost of fuel and the increase in VAT means that the cost of living has risen at a time when most of us are experiencing pay freezes, pay cuts and - in some cases - unemployment. Worryingly, our research found that, in the last quarter of 2010, there was a four per cent jump in the number of businesses making redundancies."
This isn’t necessarily the bad news it sounds, as although these figures are quite shocking, it also means that more people are now getting the help they need. Work by organisations such as the Debt Resolution Forum has helped improve the image of debt management companies in people’s eyes by weeding out the ‘rogue traders’, ensuring that the level of service now available to the public is of the highest level, and that Debt Management Plans (DMPs) and Individual Voluntary Arrangements (IVAs) are fit for purpose.
If you are struggling with debt contact us and talk to an advisor now.
