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Personal insolvencies continue to decline

Insolvency Service statistics released today show there were 20,826 individual insolvencies in Q1 2015, a decrease of 18.6% compared to Q1 2014.
 
Jane Tully, head of insight and engagement at the Money Advice Trust, the charity than runs National Debtline, commented:
 
‘While we are encouraged by the continuing fall in the number of personal insolvencies, this does not mean that the issue of personal debt has gone away or will simply right itself as the economy improves. More and more people are struggling to make ends meet and pay their monthly bills. Household borrowing is also escalating as the economy improves -  unsecured debt is forecast to reach a worrying 170 percent of household incomes by 2020.  Most people will be able to cope with this extra borrowing, but we are concerned that many already stretched households are becoming overly reliant on credit.  Our existing debt solutions don’t necessarily work for these new challenges and we are pleased that the Government and Insolvency Service have committed to a full review of the personal insolvency framework before the end of the year.

Last year National Debtline supported close to 285,000 people in debt but there are still many thousands of who are struggling in silence, and could benefit from free debt advice. We urge anyone struggling to make ends meet, or in crisis debt to contact us on 0808 808 4000 or on www.nationaldebtline.org


 

 
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