Debt Victims Reach Record High

(BBC) – NEW INSOLVENCY SERVICE STATISTICS for the first quarter of 2009 reveal a total of 29,775 personal insolvencies — up 19% on the previous year. Bankruptcies accounted for 19,062, which is the highest figure since records began in 1960, and Individual Voluntary Agreements (IVAs) reached 10,713.

Historic insolvenciesThe chart illustrates the building tidal wave of insupportable debt that is breaking on the economic shoreline. A tidal wave that is set to grow as new Debt Relief Orders (DROs), introduced for debts below £15,000 last month, provide an additional basis for figures.

The business sector suffered 4,941 compulsory and creditors’ voluntary liquidations in the same quarter — up more than 56% on the previous year.

On the bright side: a survey of purchasing managers showed export orders jumped in April as the manufacturing sector contracted at its slowest pace in eight months in response to a weak pound.

To Reuters, George Buckley, chief UK economist at Deutsche Bank, said that the rebound in new orders was encouraging; but that other figures were largely disappointing.

‘The insolvency numbers are poor; mortgage approvals are just consolidating at low levels; and there is no evidence yet that shows quantitative easing is working,’ he said.

There have been some small signs of an improvement in the economy (following the sharpest drop in output since 1979 at the start of this year) but analysts say that many more businesses and individuals are bound to go bust this year.

EditorialThe worst thing you can do in a recession is to ignore the state of your finances. If you are in any sort of difficulty: you need to take positive action now — before things begin spiraling out of control.

Castle Point’s Citizens’ Advice Bureau, in Long Road, provides free, confidential, and independent advice and information on a wide range of subjects — including debt, employment, and benefit matters, which dominate these difficult times.

You can call-in; talk to an adviser on the telephone; use email to receive personal advice; or check-out their online service.

They are there to help…

… (09/05/2009) – Forget The TV Adverts – Seek Advice From Your Local CAB

… (15/05/2009) – Home Repossessions Up By 50%

… (02/07/2009) – Credit Card Cheques To Be Banned

… (20/07/2009) – Chances Of Winning On Premium Bonds Plummet

… (07/08/2009) – Insolvencies Reach Record High

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