A new analysis of the UK’s insolvency landscape suggests that personal insolvencies will rise by as much as 30 per cent by the end of 2017.
The research, recently highlighted by smallbusiness.co.uk, claims that Individual Voluntary Arrangements (IVAs) and Trust Deed (TD) applications are rapidly on the rise – and are likely to spike significantly by the end of the year.
According to a separate report published by insolvency trade body R3 at the beginning of April, a significant proportion of British adults are fully aware that their financial wellbeing is slipping. R3’s research, which assessed British attitudes toward personal finance since the EU Referendum, found that one in five UK adults expect their financial situation to deteriorate over the next six months, against a backdrop of rising inflation and falling wage growth.
The trade body has branded this alarming sense of self-awareness as “the first signs of a shift in attitudes towards personal finances”. It adds that on the eve of the Referendum, so-called “personal finance pessimism” fell to an all-time low – and has recovered relatively little over the course of the past nine months.
A similar sentiment was echoed by research carried out by consumer magazine Which? in March, which found that mounting debt, rising mortgage and rental costs and the spiralling cost of living in the UK are all taking their toll on “millions of working households in the UK which are already struggling financially”.
Figures from the Bank of England suggest that the level of outstanding personal debt excluding mortgages soared to £192 billion at the end of 2016. Experts have warned that a predicted rise in inflation could have serious consequences for millions of Britons.
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