Bankruptcy is on the increase and set to rocket by the end of the year, as Britain locks horns with over £1.3 trillion worth of debt.
At present, over 26,500 people in the UK have declared bankruptcy or arranged an during April – June of this year. This is an increase of 4.2 per cent in comparison to the figures for the same period in 2007.
Uswitch have estimated that the number of people who take out an IVA between now and December 2008 will have soared to over 342,000.
Typical household debt in the UK is currently ascending by £13 per day with 12 people every hour entering bankruptcy or an IVA. This is largely due to variable rate mortgages increasing by over 65% in the past five years.
As consumers consistently borrow, more and more will be seeking debt help especially when the Bank of England base rate rises yet again before the end of the year.
Increasing household debt forcing people to look at their finances
The latest rate increases have caused over 7 million women to take a serious look at their finances. 23% of females are concerned by the amount of debt that they have accumulated but are making matters worse by shuffling credit to cope with accumulating interest..
On the other side of the coin, over 65% of women have either reduced the amount of debt that they owe or have not added to the amount outstanding.
Women prefer to borrow from safer lenders such as friends and family rather than a traditional loan or overdraft, which means that they have less interest to pay back. In contrast, the male pride will not allow guys to accept token gestures from their nearest and dearest and prefer the more conventional route of borrowing.