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That Recovery! - Personal Insolvencies Rise Sparks Fears For Struggling Households

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http://www.theguardian.com/money/2014/jul/29/personal-insolvencies-rise-fears-struggling-households-interest-rate-increase

A big increase in the number of people becoming insolvent in England and Wales has prompted fresh warnings about the fate of financially stretched households when interest rates start to rise.

There were 27,029 personal insolvencies in England and Wales in the second quarter, a 5.1% rise on a year earlier.

The increase was driven by a 20% jump in the number of people entering into individual voluntary arrangements (IVAs) to a record high of 14,571, the Insolvency Service, which published the figures, said.

Some experts said it was evidence that creditors were more confident about recovering debts in an improving economy. But others insisted it showed more families were on a financial knife-edge after years of falling real wages and government cuts.

"Aside from all the talk of economic recovery, it's clear that people are really struggling," said Bev Budsworth, the managing director of The Debt Advisor.

She said hundreds of thousands of people were only just about making their monthly debt repayments because interest rates are still at a record low of 0.5%. But financial markets are pricing in a rate hike by the end of the year against a backdrop of stronger economic growth.

If rates do increase it's going to be interesting to see what happens and how long they remain elevated for above 0.5%. There doesn't appear to have been a household recovery.

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http://www.theguardian.com/money/2014/jul/29/personal-insolvencies-rise-fears-struggling-households-interest-rate-increase

If rates do increase it's going to be interesting to see what happens and how long they remain elevated for above 0.5%. There doesn't appear to have been a household recovery.

if naything personal finances are now more precarious than 2007.

Lets face it we either need a houser price crash so people can get cash back in their pockets to spend or wage inflation + 10% interest rates.

All the messing about is making it worse.

Lock up the bankers and lets get on with sorting out a modern economy for a modern age.

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I know 3 long term unemplyed niw....2 years a pop. One lost his redundancy oening up a cafe. One has spent his keeping up his wives lfestyle and was getting into propty last time i spoje to him as he didnt want to waste his savings and the bank rates were too low...third one...lives frugally...still upbeat...stil hopeful...still happy.

There is a lesson to be learned for us all there...dont be a stiupid **** and open up a cafe when your are supposed to be an i.t. specialist.

Edited by TheCountOfNowhere

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It's not a recovery, it's a relapse. ;)

Everytime I read that I do it in this voice in my head :blink:

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