The number of insolvencies issued will continue to rise unless young people are given education about how to handle their finances from an early age.
The ifs School of Finance is the only place which offers GCSE, AS and A level equivalent qualifications in personal finance. Head of public affairs at the school, Phil Hall, is urging consumers to have better knowledge over their money matters, which may stop many seeking debt advice in order to deal with unmanageable levels of debt.
Hall comments: “Levels of consumer debt have been at dizzying heights for several years, causing many to face insolvency. Once again it looks as if there will be over 100,000 insolvencies in 2008 if current trends continue. In fact, falling levels of employment together with rising mortgage, food and energy prices mean that these numbers could grow considerably in the months ahead. By equipping the public with the skills, knowledge and confidence to manage their finances effectively, the number of insolvencies would inevitably be reduced.”
Recent figures show that over 24,000 insolvencies (IVA and bankruptcy orders ) have been declared in England and Wales during the first quarter of 2008.
Are You Declaring Insolvency?
Before you declare yourself bankrupt, you might want to consider the possibility of an IVA. An IVA allows you to beat bankruptcy by making reduced monthly payments to your unsecured debt for an average period of 60 months.
Once your IVA term has been completed, any unpaid debt will be written off.
For free IVA advice or information about other debt solution services, please call our IVA advisors.