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Following today’s insolvency figures, The Money Advice Trust (MAT) is warning that many UK households face the prospect of insolvency unless they act now to get on top of their finances. The charity is warning that many struggling households are taking unsustainable action to keep up with rising prices, when getting free, impartial advice could make a real difference. Research commissioned by the Money Advice Trust found that, at any given time, up to five million people report arrears on consumer credit, failure to keep up with mortgage payments, or that meeting credit commitments is a ‘heavy burden’, but of these, just one in six seek advice from any source.
Joanna Elson OBE, chief executive of the Money Advice Trust, said:
“Many of the insolvencies in these figures will have been avoidable had people reached out for help before things began to get out of control. We have spoken with people who have gone to extreme lengths to make ends meet, without actually considering getting some free advice. “From people paying for day-to-day shopping on credit cards, to people selling cars and even pets to get some quick-cash, people have...Read more here--> CCR Magazine - Money Advice Trust warns that many insolvencies are ‘avoidable’
Previous News on the Blog:
Linky 30th March 2011: Insolvencies rise for middle and skilled working classes
Linky 6th May 2011: Personal insolvencies fall in England and Wales
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“There are millions of households across the UK trying to deal with their own budget deficit. Low earnings growth and relatively high levels of inflation over the last few years mean that many families will find that their income simply doesn’t cover their outgoings. Households dealing with unemployment or a reduction in working hours will feel this squeeze even more than others.
“There are several measures the Chancellor has announced which are likely to have a positive impact on the lives of some of Britain’s more vulnerable families, such as bringing more low earners out of income tax. However, the broader economic reality is likely to supersede these measures for the majority of those struggling to make ends meet. “Our research indicates 1.7 million people will turn to free debt advice agencies this year – one in every 28 adults, and yet even this doesn’t reflect the full scale of the problems, as there are a large number of people who will struggle in silence, without seeking help. Until the broader prospects for the economy improve, especially around unemployment, many families will need to keep a close eye on their own budget.....Read more here---: CCR Magazine - MAT comments on the Budget