Insolvencies Break 100,000
FEBRUARY 2ND, 2007
| Credit Cards (introductory rate & period) |
Typical APR | Options |
| Virgin Credit Card 0% balance transfers, 13 months ( 2.9% balance transfer fee ) 0% purchases, 3 months |
15.9% (variable) |
 |
| Post Office Credit Card 0% balance transfers, 8 months ( 2.5% balance transfer fee ) 0% purchases, 3 months |
14.9% (variable) |
|
| Personal Loans | Typical APR | Options |
| Moneyback Bank Personal Loan | 5.7% | |
| Northern Rock Personal Loan | 5.8% | |
Official figures show that the number of people going bust has passed the 100,000 level for the first time since records began almost half a century ago. Figures show that 107,288 people made themselves insolvent. Finance experts blame the huge jump on soaring household bills, the rising cost of borrowing and new legislation that makes it easier to be declared insolvent.
The jump is likely to provoke concern that an increasing number of people are struggling to keep their heads above water amid rising debt levels and increased household costs.
Just days ago, the Council of Mortgage Lenders announced a 65% hike in the number of households who saw their homes repossessed during 2006.
And despite predictions that debt levels will now plateau, analysts believe 2007 could see up to 130,000 people become insolvent.
Despite the gloomy insolvency figures, there have been some indications that attitudes towards racking up debt are beginning to change for the better.
The amount people are prepared to put on their credit card appears to be falling.
