Personal insolvencies reached their highest levels since 2011, with individual voluntary arrangements (IVAs) at the highest annual level recorded, highlighting the requirement for more education, according to TDX Group head of financial difficulties Richard Haymes.
Following the release of the 2018 Insolvency Service statistics, Haymes has “urged anyone experiencing financial pressure to seek help from their creditors or free independent money advice at an early stage so alternative solutions can be explored”.
TDX Group expects insolvencies to remain at this high throughout 2019 and 2020, claiming that it will be “fuelled” by high consumer lending and the forceful marketing of companies offering personal insolvency as a debt management solution.
The group has found that almost three in ten people are unaware that entering personal insolvency could affect their access to rental accommodation, while more than a quarter (26 per cent) do not know that it could affect their eligibility for a bank account. Perhaps the most worrying statistic, nearly one in five (19%) adults in Britain do not think it will influence their ability to access a mortgage.
“The government consultation on increased breathing space and Statutory Debt Repayment Plan (SDRP) closes today, and is designed to provide more support for consumers. The more we publically debate debt and ways to manage it, the better the outcomes will be for individuals, businesses and the economy as a whole,” Haymes concluded.
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