News Article

Business Recovery & Insolvency

Debt Options UK react to news from Credit Action that figures show one person in the UK becomes insolvent or bankrupt every 3.69 minutes

By CreditMan Tuesday, May 18, 2010

Debt Options UK have reacted to news of rising rates of insolvency and repossessions by extending their online services for consumers troubled by debt.

UK charity Credit Action released figures online for March and April 2010 showing that one person becomes insolvent or bankrupt every 3.69 minutes. One property was reported repossessed every 11.4 minutes. The news comes alongside recent telling statistics from the government Insolvency Service, that personal insolvencies are up by 17.9% in England and Wales compared to this time last year.

A spokesperson from Debt Options commented that, "these reports demonstrate the current overwhelming need for good quality debt help in the UK".

Credit Action stated this month that the Citizen''s Advice Bureau''s staff work on an estimated 9,500 brand new debt problem cases daily. Unsecured debt was estimated at an average of around £18,324 for each UK household actually holding credit agreements.

Debt Options work to provide quality debt advice and as well as information, their website allows consumers to directly apply for their help online.

"We''re different in that we''re not connected to or funded by lenders, so we are free to give advice tailored to getting the best option for consumers. The increasing numbers of bankruptcies, insolvencies and repossessions demonstrate that people with debt problems deserve good quality debt advice more than ever in the downturn".

Credit Action warns that the high numbers are expected to continue for the foreseeable future. Debt Options have expanded their range of online services to include even more information on commonly used legal debt solutions and strategies for those who may still be able to manage without needing to enter one.

Credit Action point out May redundancies are at a level where one staff member is let go every 11.4 minutes. Combined with their reported concerns of public sector cuts this is likely to be a contributing factor to new waves of problem debt cases. Debt Options web site now includes information to guide people on key state benefits for those most in need and how to enquire about claiming.

"In every circumstance, the key is to get calm, professional advice - particularly if debts are a source of personal strain for you. It''s quite understandable to need some expert advice at this time, but it needs to be impartial. You need advice on all the options legally available to you to help end debt problems."

Alongside the call to gain proper help, Debt Options point out that whilst some may feel a sense of stigma attached to needing debt management help, the simple fact is insolvencies are more and more common, occur across the spectrum of UK life and this seems to be being supported by the extent of the Credit Action figures.

"Our directors have over eleven years experience supporting people with serious debt problems from many different walks of life - the only one common factor is the need for unbiased assistance."

Source - Press release