High UK insolvency 'may stem from job situation'

Tuesday, May 11th 2010

People struggling to find jobs might account for the high number of personal insolvencies currently found in the UK.

According to Credit Action, this figure is likely to stay as it is until the employment situation improves.

Director of the organisation Chris Tapp said: "For people who are struggling to find the work that they need, there is still going to be a risk of running into severe difficulty with their debt."

And those who are in work may still be facing debt problems because of a cut in wages or working hours, he added.

His comments follow reports from the Insolvency Service, which noted 35,682 individual insolvencies in England and Wales in the first three months of 2010 - a 17.9 per cent rise from the previous year.

Mr Tapp advised those in debt to try to negotiate with creditors via a debt counselling charity, which can be done for free.