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05/01/2011
Dealing With Debt Is Crucial, Say Insolvency Service
Levels of personal insolvency are starting to decline following a steady upward trend over the last ten years says The Insolvency Service.
In 2009 personal insolvency numbers were the highest for 20 years. In 2010, despite a slight drop, the number of people entering into formal insolvency procedures remained relatively high, showing that more needs to be done to encourage people to manage their money better, and where possible, to avoid insolvency.
Britain’s pensioners are shown to be the fastest growing group of bankrupt individuals in the UK. Although levels of bankruptcy among men and women aged over-65 are the lowest in the UK, the numbers of bankrupt individuals in this age group have increased six times in a decade and at a 50% faster rate than for other age groups.
Men still make up the majority of bankrupts (60% in 2009) but the proportion of women bankrupts is growing (from 29% in 2000, to 40% in 2009);
The average age of a bankrupt individual in the UK is 41, which is close to the average age of the population (39.5yrs).
Among women aged over-65, the rate of bankruptcy has grown even more sharply, over ten times between 2000 and 2009 and in London it is 43 times higher.
Since they started in April 2009 to the end of September 2010, 30,838 people have taken out Debt Relief Orders, to free them from unmanageable debt and support them in making a fresh financial start.
The average age of a person with a Debt Relief Order between April-December 2009 is 40 years-old, which is comparable to that of a bankrupt for the same period (41 years-old).
To encourage more people to deal with their debt, The Insolvency Service is running a week-long (3-8 January) ‘Dealing with your debt ‘ campaign, supported by charity sector partners, Citizens’ Advice, the Consumer Credit Counselling Service and the Money Advice Trust.
Stephen Speed, Chief Executive of The Insolvency Service said: “Although personal insolvency levels are no longer rising, they remain stubbornly high, reflecting the high levels of personal debt that persist across the country.
“Prevention is much better than cure as far as personal finances are concerned. Review your personal finances frequently and make sure you are not taking on debt that you can’t afford to repay.
“If you are getting into trouble, act quickly and seek advice about how to deal with it. There are plenty of sources of advice, many of which are available free of charge. If insolvency looms then remember that you have choices. Discuss these with your adviser and make sure you understand which one is best for you. The Insolvency Service’s booklet, “In debt? Dealing with your creditors” provides clear and impartial information that will help you understand your options.”
Adding support to the campaign Citizens Advice Director of Policy, Teresa Perchard said:
“Post Christmas is a stressful time for many people who are struggling with their debts. Citizens Advice Bureaux are seeing more and more people every year who have trouble making ends meet and covering the most essential household bills. Money troubles don’t go away by themselves, as the shocking increase in the number of people seeking bankruptcy shows.
“The good news is that free help and advice is available”.
(BMcN/GK)
In 2009 personal insolvency numbers were the highest for 20 years. In 2010, despite a slight drop, the number of people entering into formal insolvency procedures remained relatively high, showing that more needs to be done to encourage people to manage their money better, and where possible, to avoid insolvency.
Britain’s pensioners are shown to be the fastest growing group of bankrupt individuals in the UK. Although levels of bankruptcy among men and women aged over-65 are the lowest in the UK, the numbers of bankrupt individuals in this age group have increased six times in a decade and at a 50% faster rate than for other age groups.
Men still make up the majority of bankrupts (60% in 2009) but the proportion of women bankrupts is growing (from 29% in 2000, to 40% in 2009);
The average age of a bankrupt individual in the UK is 41, which is close to the average age of the population (39.5yrs).
Among women aged over-65, the rate of bankruptcy has grown even more sharply, over ten times between 2000 and 2009 and in London it is 43 times higher.
Since they started in April 2009 to the end of September 2010, 30,838 people have taken out Debt Relief Orders, to free them from unmanageable debt and support them in making a fresh financial start.
The average age of a person with a Debt Relief Order between April-December 2009 is 40 years-old, which is comparable to that of a bankrupt for the same period (41 years-old).
To encourage more people to deal with their debt, The Insolvency Service is running a week-long (3-8 January) ‘Dealing with your debt ‘ campaign, supported by charity sector partners, Citizens’ Advice, the Consumer Credit Counselling Service and the Money Advice Trust.
Stephen Speed, Chief Executive of The Insolvency Service said: “Although personal insolvency levels are no longer rising, they remain stubbornly high, reflecting the high levels of personal debt that persist across the country.
“Prevention is much better than cure as far as personal finances are concerned. Review your personal finances frequently and make sure you are not taking on debt that you can’t afford to repay.
“If you are getting into trouble, act quickly and seek advice about how to deal with it. There are plenty of sources of advice, many of which are available free of charge. If insolvency looms then remember that you have choices. Discuss these with your adviser and make sure you understand which one is best for you. The Insolvency Service’s booklet, “In debt? Dealing with your creditors” provides clear and impartial information that will help you understand your options.”
Adding support to the campaign Citizens Advice Director of Policy, Teresa Perchard said:
“Post Christmas is a stressful time for many people who are struggling with their debts. Citizens Advice Bureaux are seeing more and more people every year who have trouble making ends meet and covering the most essential household bills. Money troubles don’t go away by themselves, as the shocking increase in the number of people seeking bankruptcy shows.
“The good news is that free help and advice is available”.
(BMcN/GK)
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The future of the face-to-face debt advice programme has been secured today with the Government announcing £27 million of funding for the next year. The Government wants to ensure that individuals facing financial difficulty can get valuable impartial advice early, rather than wait until their problems become much more difficult to resolve.
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The future of the face-to-face debt advice programme has been secured today with the Government announcing £27 million of funding for the next year. The Government wants to ensure that individuals facing financial difficulty can get valuable impartial advice early, rather than wait until their problems become much more difficult to resolve.
03 October 2005
National scheme to tackle personal debt
People with personal debt problems are set to benefit from a new national scheme, which encourages early contact between debtors and creditors. The introduction of Pre-Action Notices (PAN), by the Department for Constitutional Affairs, is aimed at helping people to resolve debt difficulties without going to court.
National scheme to tackle personal debt
People with personal debt problems are set to benefit from a new national scheme, which encourages early contact between debtors and creditors. The introduction of Pre-Action Notices (PAN), by the Department for Constitutional Affairs, is aimed at helping people to resolve debt difficulties without going to court.
20 January 2012
Two Debt Management Firms Wound Up
Two debt management companies based in Glasgow, have been wound up following an investigation by the Insolvency Service. Cost Reduction Services (2010) Ltd and Cost Reduction Services (UK & NI) Ltd, were shut in the public interest by Edinburgh’s Court of Session on Thursday.
Two Debt Management Firms Wound Up
Two debt management companies based in Glasgow, have been wound up following an investigation by the Insolvency Service. Cost Reduction Services (2010) Ltd and Cost Reduction Services (UK & NI) Ltd, were shut in the public interest by Edinburgh’s Court of Session on Thursday.
27 April 2012
Government Departments Outsourcing Debt Collection
Government departments tasked debt collection agencies with recovering almost £60bn in unpaid consumer debt last year, according to figures release for the first time by the industry.
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Government departments tasked debt collection agencies with recovering almost £60bn in unpaid consumer debt last year, according to figures release for the first time by the industry.
21 October 2004
Charity calls for credit reform to tackle rising debt problems
Citizens Advice has issued a credit warning to consumers after revealing that people approaching the agency with debt problems had risen by three-quarters over the past seven years. On the back of the figures, the charity has today called for a reform of Britain’s "outdated" consumer credit laws to be included in the Queen’s Speech later this year.
Charity calls for credit reform to tackle rising debt problems
Citizens Advice has issued a credit warning to consumers after revealing that people approaching the agency with debt problems had risen by three-quarters over the past seven years. On the back of the figures, the charity has today called for a reform of Britain’s "outdated" consumer credit laws to be included in the Queen’s Speech later this year.
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