UK Personal Insolvencies Might Rise by 20%

Britain is sitting on a financial time bomb, according to a leading UK charity.

Debt Advice Foundation, a charity that provides Britons with free confidential advice on debt matters, announced recently that the number of personal insolvencies in the country might increase by as much as 20% in the near future as a result of the Coalition government's Comprehensive Spending Review.

Commenting on the current situation, Mr. Rodger, M.D. at Debt Advice Foundation, said that "although insolvency volumes are the product of a number of contributory factors, unemployment, particularly new unemployment, is a key determinant. We could see insolvencies rise to in excess of 40,000 per quarter, which is 20% higher than present levels."

The Comprehensive Spending Review has recommended the abolition of nearly 500,000 public sector jobs, and some leading economists have predicted that for every job lost in the public sector, another is lost in the private sector.

Now more than ever, it is imperative that debt be dealt with in a pro-active manner. If you are struggling with debt, contact a debt management company and see if they can assist you in becoming debt-free.