The number of personal insolvencies is anticipated to reach 105,000 people a year by 2022, breaking highs last seen six years ago.
According to the latest econometric forecast from the ‘Debt Britain 2018’ research, the number of households in personal debt default is set to increase to 3.8 million by the end of 2022, up from 3.3 million at the end of 2017.
Based upon analysis of the Office of Budget Responsibility (OBR) projections for interest rates, unemployment and consumer debt, the report shows that, despite a slight dip in total personal insolvencies expected in 2019, due to the lagged effect of the post-Brexit referendum bank base-rate cut and subdued unemployment, an upwards trajectory will follow, fuelled by rising interest rates on the back of the Bank of England base rate rise.
The analysis also identified that the performance of insolvencies has been worse than that of debt defaults and repossessions in recent years. This development could be to the result of an increased willingness of people to address excessive debt through a formal arrangement with creditors.
Personal insolvency can be an overwhelming and stressful experience. Before taking that painful step, expert advice should be sought so that all options can be considered. If there is no alternative, then an understanding insolvency practitioner can make the process as painless as possible.
Our experts at our partner business BM Advisory can help. Whatever your situation, the sooner you contact us the more options you will have available to you. Your initial consultation is free of charge, and you can rest assured that it will be in total confidence.