A recent survey suggests that it is going to cost the average British household a whopping £5,000 over the next year, just to maintain their current level of debt and not slide any closer to insolvency. So, this is simply the level of expenditure that we are facing in order to meet the interest added to our debt repayments. It doesn’t even begin to pay off the initial debt itself. Obviously, this is on top of the regular bills and expenditures that every household faces and, as we all know, there is always going to be a host of hidden outgoings that are almost impossible to plan for.

As we head into the festive season and everyone gets into the Christmas spirit, the odds are that we’ll all look for a bit more credit. After all, it is the season of goodwill and how better to show that than by spending money. As a result, economic predictions point towards an increase in the cost of borrowing. In order to service this desire to lavish gifts on friends and loved ones, consumers are expected to increase their debt by borrowing more money, at a greater rate of interest. This increased rate of interest is due to a limited supply of finance which is in turn imposed by tighter funding constraints for lenders. So, in accordance with the simple economics of supply and demand, credit will get more expensive.

Be sure to pay close attention to the small print associated with any credit agreement. Too often, people are sucked in by introductory rates that are simply too good to be true. Well, too good to last anyway. This can have a crippling effect on your finances and push you into debt. Even though it’s tempting to over extend at this time of year, as we’re bombarded with adverts and other temptations to spend, it’s important to stay debt savvy. You don’t want to start the New Year with the threat of impending bankruptcy.

This news comes in the wake of a record number of declared insolvencies. The most recent figures show that bankruptcies in England and Wales for the third quarter of 2009 reached 35,242 people. That’s an increase of almost 30% on the same period of last year. It is a sobering fact that currently, a staggering 11,000 people are being declared bankrupt in the United Kingdom each month. This is a number that’s set to go even higher in the wake of our Christmas spending. If you’re unsure as to the best course of action to tackle your specific debt problems, particularly before the festive spending kicks in, use the 15 second debt wizard at Harrington Brooks. They’ll be able to show you a debt solution to suit your circumstances and hopefully help you to avoid bankruptcy.

John Barnes, the 45 year old former manager of both Celtic Football Club and the Jamaican national team, who was also sacked as manager of Tranmere Rovers earlier this month, has been declared bankrupt over failure to pay his taxes. As a result of his tax arrears, a spokesman for The Insolvency Service confirmed that Her Majesty’s Revenue and Customs made a petition for bankruptcy against Barnes which was granted by a Liverpool court in the last week.

The amount of tax debt accrued by the ex-Liverpool and England winger has not been released but what has been made clear is that the former player’s assets are now being examined by the official receiver. John Barnes is insistent that the outstanding tax debt that has resulted in his bankruptcy is simply due to an oversight which he is now in the process of correcting. It is understood that Barnes has been in touch with the Inland Revenue since the hearing to discuss his arrears and try to come to some kind of agreement over a possible repayment schedule for the unpaid taxes. The television football pundit and ex-Liverpool star’s bankruptcy is expected to be discharged on October 14, 2010.
There was a distinct element of forewarning in an interview that Barnes had with a national newspaper at the beginning of the year, in which the father-of-six spoke openly about his money woes. Perhaps someone from HM Revenue and Customs had their interest spiked by the claim, “I don’t like dealing with taxes of course.” He also said that he simply didn’t like not having enough money and didn’t like dealing with bills. Well John, who does? Whilst he was serving a seven-month contract with the Jamaica national football team last year, Barnes managed to avoid a significant fine for driving without insurance. He pleaded poverty despite earning an estimated £4,000 a week.

The lesson to learn from John’s situation is that it never helps to ignore the situation. Get debt help as soon as you can foresee potential payment difficulties. Talk to a specialist debt advisor at Harrington Brooks, one of the longest established financial practices in the UK (0800 048 1764). They’ll be able to offer you a personal debt solution that will hopefully help you to avoid bankruptcy.