Second quarter figures from the Insolvency Service showed a 4.2 per cent annual rise in the number of individual insolvencies through bankruptcy and individual voluntary arrangements and anecdotal evidence suggests these now include borrowers on middle and higher incomes.
(PRWEB) October 5, 2007
The current moneymarket confidence freeze -- caused by the recent credit crunch -- promoting a sense of fear in the money markets and making loans harder to find and more costly, is now affecting even the more well-off, as noted by recent enquiries to The Debt Counsellors.
According to a recent news report: "Second quarter figures from the Insolvency Service showed a 4.2 per cent annual rise in the number of individual insolvencies through bankruptcy and individual voluntary arrangements and anecdotal evidence suggests these now include borrowers on middle and higher incomes."
This news follows recent figures released by the Citizens advice Bureau showing that debt enquiries to the Bureaux in England and Wales have hit a record high, increasing by 20 percent in the last year and bringing the total to 1.7 million in 2006/07. The number of debt problems brought to bureaux has doubled in the last 10 years.
The rise in all debt enquiries and debt and IVA enquiries from middle and higher income groups is underlined by many industry leading UK advisors on debt management and IVAs, including The Debt counsellors who have over a decade of specialists experience in the consolidation and IVA solutions sector.
The Debt Counsellors spokesman John Porter agrees that enquiries regarding IVAs and debt consolidation in total and from wealthier households have risen significantly month-on-month. "Generally those on middle and higher incomes have more complex financial concerns, demanding extensive support from our advisors, especially regarding property implications rising from IVAs."
For those considering finding out more about IVAs, John Porter points out: "the Individual Voluntary Arrangement (IVA) is an important piece of government legislation. An IVA helps avoid the trauma of bankruptcy for those who owe more than £12,000 to three or more creditors, and are in regular employment."
The Debt Counsellors provide IVA advice and IVA information and are licensed insolvency practitioners to agree IVAs for its clients.
To find out more about how The Debt Counsellors can help reduce your debt burden and how to become debt-free in 36-60 months, please call: 0800 018 6018 or visit http://www.debtcounsellors.co.uk.