February 17, 2009
Individual Insolvency On The Rise
Recent statistics from the Insolvency Service has found that personal insolvency has risen by 18.5%, meaning more people are letting debt get the better of them.
John Fairhurst, managing director of Payplan, says: “The increase in individual insolvencies can be explained by three major factors: the lack of available credit leading to already indebted individuals ‘falling off the cliff’, lenders encouraging their customers to look at the whole of their financial situation and seek independent help for their debts and the current economic crisis, leading to previously financially sound individuals unable to handle their debt commitments.”
In many of these cases the borrower is already ‘falling’ – they have let their problems get the better of them and have got into a situation where no financial adviser of money lender will be able to help them. The key is to get advice and help long before the situation gets too bad. Talk to your lender and talk to an adviser and see what can be done to avoid the worst.
Fairhurst adds: “This January alone, we have seen a 14% jump in the number of overindebted consumers seeking help from Payplan. This number was by a huge increase in the number of debtors referred by lenders. This huge increase in calls resulting from lender activity shows a demonstrable commitment to responsible lending and treating customers fairly.”
This is a good sign – lenders are ready to work with those in debt. This means there will be more opportunity for financial help in the form of remortgages, equity release and secured loans. The lenders do not want borrowers to get into difficulty – they want them to talk to advisers, debt specialists and mortgage brokers to help clear up any financial messes for good.
SOURCE: Insolvency Service, Payplan, 06/02/09
To keep up with the latest news and comments on current financial affairs please visit the Secured Loan Blog.
Related posts:
Filed under Blog by admin
