Latest Debt News
UK bankruptcy increasing
06/05/2008 10:27:00
The number of cases of bankruptcy in the UK is increasing with over 100,000 insolvencies predicted by the end of the year, according to a financial expert.
uSwitch.com said that consumer debt has now reached £1.4 trillion, a figure that is growing by £1 million every five minutes.
Up to 292 will declare themselves insolvent and 74 homes will be repossessed every day, revealed figures from the financial services comparison experts.
Ann Robinson, director of Consumer Policy at uSwitch.com, said: "It's worrying that so many people are resorting to individual insolvencies, be it an Individual Voluntary Arrangement or bankruptcy, to resolve their personal debt problems."
These measures should be the "last resort for anyone with financial problems" as they can have a serious impact on the credit history of a consumer, she continued.
Further findings from the firm showed that the cost of living has shot up by nine per cent - which is more than double the average salary increase.
This in turn has led to five million consumers spending more than they earn every month.
Meanwhile, uSwitch.com stated petrol prices recently reached their highest price in 20 years.
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