Personal Insolvency Likely to Continue Throughout 2011

Published on 1 January 1970 by Raffick Marday

Personal Insolvency to GrowNew figures suggest the number of personal insolvencies in England and Wales is likely to continue at current high levels, throughout 2011.

The Insolvency Service showed there were 135,089 individual insolvency cases in England and Wales in 2010, up from 134,142 the year before.

Debt charity Consumer Credit Counselling Service (CCCS), warns this is likely to continue in an upward trend in 2011 as the nation battles with increased pressures on household budgets.

The recent VAT rise for example has made it harder for people in debt to meet repayments, while rising inflation, wage freezes, overtime bans, redundancy and welfare changes are pushing people to their limits.

“The picture is bleak, particularly in view of the pressures on advice services,” commented Delroy Corinaldi, CCCS External Affairs Director.

“It would compound the situation if over indebted households believed they had no alternative but to pay for debt advice.”

How to Budget Money Better

If your monthly take home pay is being stretched to its limit, and you have little to repay your debts, let alone save anything for the future, try using a prepaid credit card to aid budgeting.

Once you have drawn up a budget and a plan of how much you need to spend on monthly essentials, saving and cutting down where possible, you can load this money onto a prepaid credit card.

Unlike a credit card, the prepaid card only allows you to spend what you have preloaded onto the card, so once you have reached the limit you will have to readjust your budget, or make do until the end of the month.

Getting into debt can often start off small, where you missed a credit card payment for example, the key to preventing this from spiralling out of control is to get on top of the situation immediately, and start to budget and get advice.

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