Monday, Jan 14, 2008

This year’s total number of insolvencies are likely to outstrip 2007’s figure of 110,000

Mortgagestrategy: IVA.com sees 67% surge in enquiries

IVA.com has reported a 67% surge in enquiries for individual voluntary arrangements this January compared to December.
The comparison site for IVAs says a lethal cocktail of credit card bills, utilities bills and the deadline for self-assessment tax payments makes January the hardest month for consumers.Terry Balfour, director of IVA.com, says: “January is the cruellest month when it comes to bills – as well as for many already feeling the pressure of higher mortgage repayments, along with the raft of outgoings needed purely to service their debts.

Posted by jack c @ 06:34 PM (367 views) Add Comment

7 Comments

1. alan said...

"IVA.com has reported a 67% surge in enquiries for individual voluntary arrangements this January compared to December". They could be crying wolf too quickly. The month isn't even half over!

However, if these indicators hold true for the whole month, it's time for Credit Card lenders to strap on their kevlar vests!

Monday, January 14, 2008 07:12PM Report Comment
 

2. tyrellcorporation said...

The collapse in credit card lending in the US is now well under way and apparently could well be bigger than the mortgage defaults. Coming to a stig near you!!!

Monday, January 14, 2008 08:17PM Report Comment
 

3. renting2 said...

This will be compounded by IVAs and bankruptcy now becoming more 'fashionable' than repaying the debt. Also, according to some sources (see debt forums like www.consumeractiongroup.co.uk) only about 5% of defaulted debt may be suitable for litigation anyway. A big black hole of debt that can only be partly filled by repossessing those with enough equity. The rest will come from lower returns for savings and investments and higher debt interest rates. Not good for the housing market.

Monday, January 14, 2008 08:17PM Report Comment
 

4. new_order said...

Let them bleed!

I am young and I can wait 10 years for a crash if necessary, but how long can they keep it propped up for? A year, a month? The age of the chav celebrity lifestyle is coming to an end. May the chavs suffer so badly that even the third generation after them (40 years after) will suffer the consequences.

Monday, January 14, 2008 09:09PM Report Comment
 

5. it_is_going_with_a_bang said...

My brother is up to 30k on cards now. He won't bother going bankrupt - which is inevitable - until he reaches the 45k / 50k limit on his cards. Buying all the things he may want for the lean years ahead.
Car/TV/Holidays. Live it up now and then take it easy for 7 years. He is past the point of caring anymore.

Monday, January 14, 2008 09:16PM Report Comment
 

6. David Smith's Sub Prime. . . said...

I have a client like that. He has contempt for the criminal law...

There's only one thing which will make him see sense. No more credit simple. And extra charges on the rest of the populus would make the problem very unlikely ever to reoccur through peer pressure...

Monday, January 14, 2008 10:13PM Report Comment
 

7. stillthinking said...

Passport office during summer time. There won't be enough people to chase after the defaulters.

Monday, January 14, 2008 11:01PM Report Comment
 

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