For immediate release: Thursday,
2nd November, 2006
INSOLVENCIES ON RISE; 1 IN 3 WOMEN STRUGGLING WITH DEBT
REPAYMENTS
- 8.4 million
or 1 in 5 adults have unsecured debts of over £10k -
(London, 02/11/06) According to research published
today by leading debt solutions consultancy, Thomas
Charles (www.thomascharles.com), the number of consumers
facing personal insolvency is continuing to rise
steeply, with women by far the worst affected.
According to research conducted in October of this year
with 2,322 respondents, the number of adults in the UK
in over £10k of unsecured debt has increased by 0.4
million in 6 months, rising 1% from 8 million (19%) in
April 2006 to 8.4 million (20%) in October 2006. This
means 1 in 5 people now have unsecured debts of over
£10k.
The survey also found a worrying increase in the number
of people struggling to meet repayments. The number of
adults reporting regular problems repaying their debts
has risen 9% from almost 1.8 million (21%) in April 2006
to 2.5 million (30%) in October 2006.
Again, women in over £10k of debt were found to be the
group experiencing the most financial difficulty, with 1
in 3 (33%) now reporting regular problems repaying their
debts; an increase of 7% from just over 1 in
5 (26%) in April 2006. Men fare a little better with
just over a quarter (27%) reporting regular problems
repaying their debts; an increase of 8% since April
2006.
As more people than ever struggle to meet their
repayments, the number of people teetering on the brink
of insolvency has also rocketed. 1.4 million adults
(17%) in over £10k of unsecured debt, report that they
are ‘quite likely’, ‘likely’ or ‘certain’ to declare
themselves bankrupt or take out an IVA. That’s an
increase of 4% from 1.1 million (13%) in April 2006.
Here, the gender trend continues with 21% of women in
over 10k of unsecured debt now report some likelihood of
becoming insolvent (an increase of 6% in 6 months)
compared with 15% of men (an increase of just 1% since
April 2006).
James Falla, Director of Thomas Charles, commented:
“This research pre-empts the DTI stats, which record
personal insolvencies on a quarterly basis. Our latest
research confirms that the debt problem in the UK is
continuing to worsen.
We are currently witnessing a correlation of increased
borrowing alongside a massive decrease in the number of
people coping with their debts. If action is not taken
to curb borrowing trends in the UK, the situation is
likely to spiral over the coming years, as illustrated
by the 1.4 million adults currently reporting some
danger of insolvency. In the female population, for
example, where 1 in 3 women in £10k+ of debt are
struggling with repayments, we could quickly reach a
tipping point where those in financial trouble outnumber
those who are not.”
Consumers wishing to contact Thomas Charles for advice
on debt can do so via the company’s website (www.thomascharles.com)
or by phone on 0800 072 5988.
CONSUMER DEBT:
Key stats
- Number of people in serious debt has increased by 0.4
million in 6 months
- 8.4 million or 1 in 5 adults have unsecured debts of
over £10k
- 2.5 million adults have regular debt repayment
problems
- 1 in 3 women struggling with debt repayments
- 1.4 million adults to declare themselves bankrupt or
take out an IVA
Top tips
• Don’t bury your head in the sand. Try working out your
financial position using the debt-help-uk.org.uk ‘debt
wizard’.
• Consider transferring credit card debt to a 0% card
while you deal with more pressing bills, such as any
council tax or mortgage payments. But don’t use this as
an excuse to run up more debt elsewhere.
• Don’t take out other loans to pay off the original
debt or use a consolidation loan. If you must do this,
be disciplined and don’t use the new loan money for
anything else.
• Talk to your creditors about structuring a realistic
repayment plan; the CCCS can help (0800 138 1111).
• If you cannot do a repayment plan and you do not want
to go bankrupt then try an IVA. Visit iva.co.uk
or call the IVA helpline (0800 197 48 38).
• If you want to consider bankruptcy then try the CAB (citizensadvice.org.uk)
Useful contacts:
About Thomas Charles & Co Ltd
Thomas Charles & Co Ltd was set up in 2004. The Joint
Managing Director, James Falla has 7 years experience in
the insolvency and debt management industry and was
involved in the set up of debt help specialists,
Brookvale Group PLC, listed on OFEX since 2001.
Thomas Charles operates throughout England and Wales
with its head office in Acton (West London). It has a
personal, consultative approach to debt management. It
focuses primarily on providing formal solutions for debt
problems including Individual Voluntary Arrangement and
Bankruptcy. However, it will also provide advice around
informal debt repayment plans where appropriate. It
works with third party Insolvency Practitioners around
the UK.
Notes to Editor:
The research was commissioned by Thomas Charles and Co
and conducted by YouGov Plc. Total sample size was 2,322
adults. Fieldwork was undertaken between 11th - 13th
October 2006. The survey was carried out online. The
figures have been weighted and are representative of all
GB adults (aged 18+).
The April 2006 Survey was conducted online and fieldwork
took place from 29th March, 2006 to 3rd April, 2006 and
comprised an Omnibus followed by an in-depth survey on
1336 adults.
Charts, tables and analyses are available on request.
About Thomas Charles & Co Ltd
James Falla has advised people who have personal debt problems since 1997. During this period he has helped 1000s of people through the IVA process and worked with many others who have decided to undertake both Bankruptcy and informal Debt Management Plans.
James co-founded Thomas Charles (www.thomascharles.com) with William Berry in 2004 with the objective of providing clear impartial advice and solutions for people in serious debt. James has made numerous TV and radio appearances, including BBC1 News, BBC News 24, and Wake Up To Money.
Debt Expert and Author
James is also the Author of the book 'IVA, Bankrupcty
and other Debt Solutions, The Definitive Guide'.
To request a complimentary hardback review copy, or to purchase copies of the book for resale, please contact
Emily Cagle on +44 (0) 20 8832 1200.
