Trade body predicts 150,000 cases of insolvency this year

Posted 16/03/2010

It has been predicted that there will be more than 150,000 cases of insolvency in the UK by the end of 2010.

The estimates come from insolvency trade body R3, which also stated that British people are currently struggling with their finances following the festive season.

Its data showed that 31 per cent of personal insolvencies in March are caused by increased spending at Christmas, a time when people may have tried to forget about the economic downturn by spending money on their credit cards.

R3 president Peter Sargent urged anyone having trouble with debt to seek advice as soon as possible.

“The stigma of insolvency means that many wait up to six months before admitting they have a problem … Sadly, the longer people take to get help, the fewer solutions are available to them,” he pointed out.

Earlier this month, the Consumer Credit Counselling Service said that more men are likely to face insolvency this year than women due to higher levels of personal debt.