Personal insolvencies 'will remain high'

By Sarah Engle, Tue 11 May 2010 - Published in Credit Cards

Personal insolvencies are likely to remain high for some time, according to one sector expert.

Chris Tapp, director of Credit Action, a national money education charity, said that many people are still getting over the latest "debt binge", so it is unlikely that pressure on people' incomes will decrease due to continued unemployment.

His comments follow the latest report by the Insolvency Service, which showed that there were 35,682 individual insolvencies in England and Wales in the first quarter of 2010, an increase of 17.9 per cent on the same period a year ago.

Mr Tapp stated: "I think we will still continue to see personal insolvencies very high for some time until employment begins to filter back into the system and more people can get back into jobs."

He added that, in the meantime, people who are struggling to find work will still be at risk of running into "severe difficulty" with their debt.

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