MONDAY, DECEMBER 04, 2006

 

Another issue of concern is a new report issued today that said the rising number of home repossession orders as more and more people overspend and accumulate massive debts.

 

'The report stated : “Millions of UK consumers find themselves either in serious financial difficulties, or on the borderline of falling behind with their regular payments. Despite this, far too many people are unsure where to turn to for sound advice, help, or financial education.”

 

Steve Treharne at KPMG, told reporters that over the 12 month time span since the end of September last year to the end of September this year, more than 98,000 people have become insolvent through a bankruptcy or an IVA. “The increase in the number of people entering IVAs is causing concern,” he said. “Several leading institutions have raised concerns at these record levels and have commented on the limited extent to which the advice sector is regulated.”

 

And he added: 'The Government has made it clear that it has no plans at this stage to strengthen regulation. It is therefore essential that all involved have an open dialogue about the solutions which are to be offered to the increasing number of consumers struggling to manage their debts.' Mike Gerrard, head of personal insolvency at financial services group Grant Thornton said, “The number of IVAs was going through the roof” and added: “Individuals with credit card debts in excess of £50/60,000 are not at all uncommon, while the overall age of those affected appears to be on the decrease with a larger proportion of women also noticeable.“

 

If you are in debt and do not know what to do, below are a few tips to help you get on the road to financial freedom. It was found that the main reason why so many people were going into debt is because they simply ignored any bills and refused to pay them. As a result they found them selves owing more and more and often had to file for Insolvency or give up their assets. As a result, it is very important that you are aware of your financial conditions and you pay off all bills as soon as possible. Higher interest rates are a big problem, so you do not want to get behind on any payments that you must make. You should also be wary of how much you spend using credit cards and to make sure that you “have what you spend”.

 

If you are in debt, making all payments you owe is your best option, and if your are not in debt, follow the tips above to insure that you will not go into debt.

 

Gerrard said that he believes due to a variety of factors that will lead many more people into debt over the past few years, more people than expected will file for insolvency and / or lost their assets. “Based on our analysis of Council of Mortgage Lenders statistics for 2006 so far, we believe that upwards of 12,000 homes will be repossessed this year.”