Think Money

Think Money

July 15, 2010 09:55 ET

Insolvency could be avoided with early action

LONDON, UNITED KINGDOM--(Marketwire - July 15, 2010) - Responding to figures from the Insolvency Service which show a sharp rise in insolvencies across all regions of England and Wales in 2009, financial solutions provider Think Money has called on struggling borrowers to take action on their debts before the problem gets out of control.

The company reminded borrowers that insolvency can sometimes be avoided by getting advice as soon as debt problems become apparent.

The Insolvency Service's statistics showed that there were 31.1 personal insolvencies (including IVAs (Individual Voluntary Arrangements) and bankruptcies) per 10,000 of the adult population in 2009.

The North East region fared the worst that year, with 38.1 insolvencies per 10,000 people, while London suffered the least with 19.6 insolvencies per 10,000.

Insolvencies per capita have been on a sharp upwards trend for many years now, with only 2008 showing a slight fall. In 2000, there were just 7.2 insolvencies per 10,000 people across England and Wales - less than a quarter of today's figure.

A debt expert at Think Money commented:

"We already knew that insolvencies have been rising sharply in recent years, but these figures demonstrate just how quickly the problem has grown, as well as how insolvency levels vary across England and Wales.

"It's possible that many of these cases - and many in the future - could be avoided simply by getting debt advice before the problem has a chance to get out of control.

"Many people's reaction when they realise they have a debt problem is to hope their financial situation improves and they often therefore delay getting help - but the best course of action is always to get advice early, even if the problem doesn't appear to be that serious.

"Of course, not all insolvencies can be avoided, as an unexpected change in circumstances can often be the cause. In those cases, speaking to a debt or insolvency adviser about all appropriate solutions is still important.

"Some people may be better off with bankruptcy, while an informal solution may be more appropriate for others - but it can be hard to decide without the help of an expert."

Notes to Editors

One of the UK's leading financial solutions providers, Think Money is based in Salford Quays, Manchester, and employs around 800 employees to deliver a comprehensive range of debt solutions, including IVAs, and a range of loan, insurance and banking solutions.

Think Money defines its mission as 'To educate, rehabilitate and advise on all aspects of financial management'.

For more information, contact Melanie.Taylor@thinkmoney.com (0845 056 6480) or visit the Think Money website at http://www.thinkmoney.com/.

Think Money IVA section: http://www.thinkmoney.com/debt/IVA/

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