| Personal Insolvency figures likely to rocket in 2008 |
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| Written by admin | |
| Saturday, 17 November 2007 | |
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Personal insolvencies in England and Wales peaked at just under 30,000 in the last quarter of 2006 and the first quarter of 2007 but the likelihood is that the ceiling will be breached in the first quarter of next year. I anticipate the numbers will continue to rise steadily throughout the year. It will not be much of a comfort to those facing this position, but a hard dose of reality in the personal credit market is long overdue. It’s deplorable that it’s taken a meltdown in the U.S. sub-prime mortgage market for lenders to review their loans and credit policies but it is essential that it happens. It’s going to mean short-term pain but unrealistic lending practices had to stop at some point; hopefully this is it. The tightening of lending criteria will undoubtedly cause the insolvency figures to rise significantly as those in the worst financial positions won’t be able to carry on. It’s a very hard lesson for the UK to learn but it’s essential that it is taken on board. Everyone has to understand that there is a cost for credit. We have to help the thousands of people in debt and part of that is removing the stigma of bankruptcy for the current generation. There is life after bankruptcy and people have to view it as the start of rebuilding their lives. That’s a very difficult message to take on board for someone who might have lost their home but it’s the reality created by over a decade of spending on credit. |
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