Personal Insolvencies are on the increase

Figures show that the number of people in financial difficulty is climbing

Recently released statistics show that the number of people succumbing to insolvency rose in 2017 when compared to 2016 and 2016 also represented an increase from the preceding year. While we have yet to reach the level of personal insolvencies last seen in 2010, the numbers of people who find themselves unable to meet their financial obligations are resolutely rising.


IVA’s at record levels

Individual voluntary arrangements are a lifeline for people who might otherwise have to opt for bankruptcy and for many represent a better option to help get their finances back on track. Last year saw IVA’s taken out in record numbers, nearly 20% more than had been employed during 2016. Bankruptcies themselves remained more or less the same compared to 2016 rather than being replaced by IVA’s, so it’s clear that insolvencies increased overall.


Debt Management Plans and other methods of debt relief?

While the official insolvency statistics are a cause for concern by themselves, it’s clear that they don’t show the whole picture. Debt management plans are informal arrangements and as such there aren’t any official statistics to indicate for sure how often this method of dealing with personal debt was taken up by insolvent individuals.


What can be done about personal insolvencies?

If you have debt which you can’t afford to pay then you may very well be insolvent or approaching insolvency. With credit being so easy to obtain and historically cheap, it’s unsurprising that many people have been living at or even beyond their means.

With jobs not being as secure as they used to be, the prospect of interest rate rises and inflation outstripping wage growth, even those who’ve taken care with their finances are being nudged ever closer to the point where they’re only just hanging on to solvency and all it takes is a minor change in circumstances to tip the balance. It cannot be stressed strongly enough that just borrowing money from one creditor to pay another tends not to deal with the problem but only increases it.


If your finances are teetering precariously, or have already started to tumble, the sooner you take action the better your outcome will be. Finances can be stabilised and credit records can be fixed. A day of worry though, represents 24 hours of happiness lost which you’ll never get back.

The nagging doubt, the stress and the worry caused by not knowing who’s going to be chasing repayments tomorrow can keep you awake at night and make life a living misery. Don’t wait a moment longer to seek the help you need, call us and take that first step towards setting your financial feet back on the right path.

Speak to us, we can help.