Press Release Summary = According to a report on personal debt by the Department of Trade and Industry (DTI), the next three years may witness steep rise in number of bankruptcy. Considering the data for the second quarter this year which show record 26,000 insolvent people in England and Wales, the situation may worsen in the coming years.
Press Release Body = London (www.chance4finance.co.uk) August 17, 2006: The Department of Trade and Industry has revealed in a report that by March 2009, bankruptcy tolls may nearly double to reach 28,000. Apart from official bankruptcy, the report takes into account credit card debt, mortgage arrears and the rising demand for debt advice agencies.
The DTI also warned that if an unexpected recession takes place, things would get worse.
However, the government denies that recent changes to the law have triggered more people declare themselves insolvent. The government maintains that the Enterprise Act of 2002 has made it feasible to come out of bankruptcy in a year rather than three.
The DTI says that however, the number of people with vast debt is small, but the continuous increase in tolls is a matter of concern.
The FSA indicated that in spite of the fact that sudden expenses and unexpected drops in income are frequent in UK; people are disinclined to make long term savings.
One of the main debt advisory agencies, the Consumer Credit Counselling Service revealed that their maximum number of clients, especially those aged between 53 and 59, seek help for credit card problems. According to the service, easy availability of credit cards accounts for much of the debt rise problem.
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