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Insolvencies to grow

Worrying new figures suggest that the record number of insolvencies recorded in the last quarter of 2006 could just be the start of a dramatic increase in cases.

The Insolvency Service has revealed that insolvency cases in England and Wales rose to 29,804 in the fourth quarter of last year, a 44 per cent increase on the same period in 2005.

The total number of insolvencies in 2006 came to 107,288, up from 67,584 in 2005.

Anne Kiem, the director of External affairs at the ifs School of Finance, warns that matters could deteriorate further.

"These increases are likely to continue, and worse, if there is even a slight downturn in the economy, even greater increases will occur," she said.

"A general lack of financial capability among the British population goes a long way to explaining why we are in this predicament."

The ifs School of Finance asserts that the government must ensure that personal money management is addressed properly in schools, with the opportunity to study for a financial education qualification.

See how much you could borrow with an unsecured loan from Lombard Direct.

02/02/2007 17:46:20

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