Atlantic warns of caution over personal insolvency figures

DEMSA member Atlantic Financial Management is warning of an upward trend in personal insolvencies as the cost of living continues to increase and inflation is due to reach an estimated 5% later this year.

Kevin Still, Atlantic Director said:

“Whilst it is encouraging that the level of personal bankruptcies and IVAs are down year-on-year, the quarterly increase is a concern. 

"Millions of householders across the UK are walking a financial tightrope, on the one hand we have welcomed news for homeowners that mortgage interest rates have remained at a record low with no signs of an early rate rise, yet on the other hand The Bank of England is predicting increased inflation.

"This, coupled with the CML’s forecast of a rise in repossessions in 2011 indicate that personal insolvencies, notably IVAs amongst middle class families, may follow the same pattern and end the year with higher levels than we have seen recently.

“It is crucial those in debt seek help before their situation worsens. In some instances an Individual Voluntary Arrangement or a Debt Management Plan from a DEMSA accredited debt solutions provider such as Atlantic can prove invaluable when unsecured debts become unmanageable. 

"An affordable schedule of repayments can be negotiated with all the creditors ensuring the mortgage or rent, council tax, energy and fuel cost, critical insurance premiums and council tax bills get paid before non-priority debts."