Atlantic Financial Management

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Debt management weekly round-up

05/11/2010

This week has seen stories which centre around people getting so overwhelmed by debt reasons, they resort to some unfortunate kinds of debt help.

Early this week, new research from the Post Office found that £7 billion has been lent, by friends, to struggling consumers over the last 12 months.

26 per cent of people said they have been giving handouts to friends, and part of this could be down to households struggling to pay for baby care goods.

Sainsbury's Finance found that a total of £2.32 billion has been borrowed over the last five years by parents - to buy prams, cots, and car seats.

There was caution however, on the use of credit as a means of debt help.

The debt advice came as the Bank of England reported that total net lending to individuals rose by £0.4 billion in September.

Seeking the services of a loan shark would be an even worse in terms of debt solutions.

However, consumers on Merseyside were relieved to hear a loan shark was ordered to pay back £1 million worth of money, to his victims.

There was more reason to be optimistic at the end of this week too, as the insolvency rate for individuals in England and Wales was reported to have fallen by 3.7 per cent, compared to quarter three, a year ago.

Kevin Still, Director of Atlantic Financial Management says: "Insolvency figures out today show that despite IVAs number being up by nearly 5% from the same time last year at nearly 13,000 in the quarter, there seems to be a welcome reduction in the levels of personal insolvency across the UK. Only Debt Relief Orders (DROs) are on the rise, which is understandable given their introduction only as recently as April 2009."
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