Personal Debt Company Debt Options give their reaction to news of lower Bankruptcies in the UK.
(1888PressRelease) June 14, 2011 - The number of personal bankruptcy cases fell in the first quarter this year, according to figures released by the Government's Insolvency Service. Yet the UK's independent Credit Action warned that the Citizen's Advice bureau was still dealing with 8,004 new debt management enquiries daily in England and Wales. Although bankruptcy rates may be down, the UK still owes £1,453 billion in personal debt. This almost matches it's entire GDP in 2010. Furthermore, debt management experts warn the trend could soon be reversed.
According to the Insolvency Service, personal bankruptcy numbers were reduced by 31.1% compared to the same quarter during the previous year. This represents the fourth quarter during which the numbers have begun to fall. Credit Action estimate that by March 2011, the UK owed a total of £212 billion in credit granted to individuals. £1,241 billion of this was made up of secured credit. Despite the record numbers of personal insolvency in recent years, overall consumer credit still increased during the year by 1.1%. If the amount of credit card debt, car finance and store credit were averaged out across the UK's adult population, it would represent £4,530 for every single one of us.
The Insolvency Service data also points to fewer consumers opting for debt management via the Individual Voluntary Agreement (IVA). IVAs decreased by 8.0% compared to the same quarter in 2010.
"This is an interesting statistic. IVAs are commonly used for multiple debts totalling over £15,000, whereas technically bankruptcies can be enforced for debts of £750 or more. Although the uptake for both of these options has dropped, the high levels of personal debt in the UK are still an issue. There are still considerable concerns over job security," said a spokesperson from Debt Options debt management specialists today.
The Government's Office for Budgeting Responsibility have estimated that by the year 2015, the average UK household will owe more than £84,000. In the meantime, Credit Action calculate that if all personal debt including mortgages were averaged out across the UK adult population, each of us would 'owe' just under £30,000.
Every 4.28 minutes one more person declares personal insolvency. One more property is repossessed every 17 minutes and 1,392 people suffered a redundancy every day in the 3 months up to February this year. During the same period, 296 people daily became unemployed for over a year.
"The UK's debt problems are not going to end soon. A redundancy or cut in pay can often be the tipping point for households who are already challenged by repaying multiple debts. We're expecting to continue to advise those needing credit card help. There are a great many people who have used these to pay regular bills. A change in circumstances can mean they then rapidly need advice on debt solutions. However, our main message is that those with debt problems shouldn't feel isolated. There are always legal, manageable debt solutions to help them end debts for good".
Anyone concerned about debt problems of any nature can contact Debt Options expert advisors in confidence using their free helpline on 0800 234 3605 or visit the contact page at http://www.debtoptions.co.uk/.
Personal Debt Company Debt Options give their reaction to news of lower Bankruptcies in the UK. 
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