Don't Get Drawn into Debt Spiral Warns Atlantic Financial Management As New Insolvency Figures Released

The publication this week of the latest insolvency figures reveals a stark picture of continuing debt problems for the UK.

Atlantic Financial Management, the debt solution provider, is urging those in financial difficulties to tackle debt problems now as we head towards Christmas and a new year of benefit cuts and tax increases plus the threat of job losses and interest rate rises.

"... there seems to be a welcome reduction in the levels of personal insolvency across the UK ..."

The figures from the Insolvency Service show that the number of personal insolvencies in England and Wales fell by 3.7%, compared to the same period a year ago to 33,935. This was made up of 13,907 bankruptcies (down 24.2% year on year), 12,960 Individual Voluntary Arrangements (IVAs), (up 4.6%) and 7,068 Debt Relief Orders (DROs), which have increased each quarter since their introduction in April 2009.

"... things aren't going to get any easier for families facing debt issues ..."

Commenting on the new figures, Kevin Still, debt expert and Director of Atlantic Financial Management, says "Whilst IVAs are up by nearly 5% from the same time last year, there seems to be a welcome reduction in the levels of personal insolvency across the UK. But this may be the lull before the storm with so many public sector workers due to be made redundant in the next few years. Debt problems are inevitable; non-borrowing debt solutions are, therefore, likely to become more important for individuals and families.

"Clearly consumers are still struggling to juggle their finances and what has particularly not helped is the rise in interest rates on credit cards which will have impacted those using a number of cards to pay their debts. We can be fairly certain that things aren't going to get any easier for families facing debt issues, especially with Christmas on the horizon and the threat of mortgage repayments increasing if Bank of England interest rates rise early in the New Year.

"A DMP or an IVA aren't a quick fix for those in debt. They need serious consideration ..."

"It really is crucial for those in debt to take some control before household income gets squeezed even further. Whether that's through a Debt Management Plan (DMP) or for those with debts of more than £15,000 and at least three creditors, a formal debt solution such as an IVA. A DMP or an IVA aren't a quick fix for those in debt. They need serious consideration as they can impact an individual's ability to secure a finance agreement in the future. But they can provide the right solution for those with substantial debts with a number of creditors.

"The key is to grasp the nettle and deal with debt problems before they run out of control. With so many factors on the horizon that will impact income and outgoings in the coming months, those in debt really cannot afford to delay."

To find out more about Atlantic Financial Management contact us or call 0845 0 30 30 30