- Wednesday, 14 April 2010Bankruptcy and
IVAs could increase as the economy is "being falsely propped up", according to an insolvency helpline spokesperson.
In response to a report from the Committee of Public Accounts released on April 8th, which criticized the government for failing to tackle consumer debt, the UK Insolvency Helpline warned that things would only get worse.
About 11 per cent of the UK's population are currently struggling with debt, with £1.5 billion owed in total. On average, every 3.97 minutes, a person is declared bankrupt or insolvent.
Ian Boden-Symth, spokesperson for the UK Insolvency Helpline, which promotes professional and independent money advice, said: "I think interest rates are going to go up and there will be a rise in
IVAs and
bankruptcy."
The Department for Business, Innovation and Skills (BIS) launched a scheme to offer support and lower the number of people with unmanageable debt in 2004 but the numbers have not decreased.
According to the CPA's report, the one successful and popular method from the BIS was face-to-face advice for indebted consumers as it helped a larger number than expected on a small budget.
However it stated that this support is now starting to flounder as demand outstrips supply.
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