Personal Insolvencies Expected to Jump Up

Personal insolvencies are set to rise still further as unemployment hit 2.57m, an increase of 114,000 between June and August 2011 taking it to it’s highest level in 17 years.

One charity predicted 70,000 new cases of extreme financial hardship among the 16-24 year old bracket and that 185,000 Britons are now struggling with significant debt.

According to official figures from the Office of National Statistics, the unemployment rate hit 8.1% according to this month’s figures, marginally higher than the highest total declared in 1994.

Joanna Elson OBE, chief executive of the Money Advice Trust, said becoming unemployed is the trigger for debt problems all too often.

She explained, “Increasing levels of unemployment will undoubtedly bring greater financial hardship to homes across the UK.

“The figures show that in the three months running up to August, 114,000 people became unemployed, that’s 114,000 people for whom paying a bill has suddenly become a desperate challenge.”

Elson has called on the industry to encourage those in financial difficulty to make contact with a specialist as soon as possible.

She said, “Evidence shows that the earlier people seek advice and get started on an action plan, the better their outcome will be.”

The latest figures show that there are now 205,000 16 and 17 year olds out of work, marking a small increase of 1.5% during the period.

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Posted at 03:56PM Oct 13, 2011 by Marc Stenton in Personal Finance  |  Comments[0]