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Behind The Statistics
Friday 5th November saw the latest insolvency statistics released by The Insolvency Service. These figures highlight a slight decrease in the number of personal and corporate insolvencies in the third quarter of 2010. However, do these figures tell the whole story?
Figures from Credit Action highlight that currently the national personal debt level stands at £1,455 billion, being more than the country produces in a year. Research suggests that 14% of individuals are currently still spending in excess of their earnings, and that 1 in 6 households are struggling and at risk from mortgage companies. Couple these factors together and it looks like it will be some time before the levels of personal insolvencies reduce significantly.
Further strain will be felt by families receiving tax credits. The changes in tax credits are planned to save the Government £6.2bn over 4 years, and much of this is set to come from making adjustments to the amounts claimable by families whose incomes are around or below the 'average' income (according to research carried out by the Resolution Foundation).
Jeanette Brown comments “Recent news articles have also highlighted a sharp increase in insolvencies in divorced and middle aged women in the 35 – 54 age bracket. This bracket has historically been considered a relatively stable area in terms of financial distress, and the increase is thought to be due to difficulties in maintaining employment and being attractive to employers as they juggle work and child-care arrangements”
Whilst many of the tax increases and public spending cuts may take a length of time to filter through the system, the VAT increase next year will have an immediate impact and there is no doubt that 2011 will be a difficult financial time for many. It is important that the tools, help and advice are available to ensure that both individuals and businesses are able to arm themselves to survive these continuing difficult times. Dodd Rescue are ideally placed to help in this process.
Contact Jeanette, Jackie or Carol on 0800 9540520 for further help and advice.
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