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Upward trend in insolvencies “likely to continue”

Money Advice Trust comments on Q2 Insolvency Statistics.

The Insolvency Service has today published insolvency statistics from April to June 2016, which show that total individual insolvencies increased for the fourth consecutive quarter.

Jane Tully, director of external affairs of the Money Advice Trust, the charity that runs National Debtline, said:

“Unfortunately we expect the upward trend in insolvencies to continue.

“While some of this rise is driven by wider access to Debt Relief Orders – with more people with relatively low debts, low incomes and few assets now getting the welcome help they need – the underlying rise in individual voluntary arrangements (IVAs) is beginning to look significant.

“Looking further into the future, we may also begin to see the added effects of the huge growth in consumer credit that we are now seeing.  While most household are able to handle this extra borrowing, we are concerned that a minority are using credit to make ends meet, in an unsustainable way.

“With added economic uncertainty following the result of the EU referendum, our message to borrowers now is to take this opportunity to review your household finances – and if you are struggling to cope, seek free advice from a debt charity as quickly as possible.”

National Debtline offers free advice at www.nationaldebtline.org or on 0808 808 4000, Monday to Friday 9am to 8pm and Saturday 9.30am to 1pm.​

 
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