‘Seek help’ advice as record numbers declared insolvent
7:54am Tuesday 13th July 2010 in Your Town
A RECORD number of people in Bolton were registered as insolvent in 2009, figures revealed last night.
Rising unemployment brought on by the recession is said to have caused the surge, which saw 642 people officially declared penniless.
That is the highest number since records began in 2000 and dwarfs the 478 insolvency declarations in 2008.
People can declare themselves insolvent in a number of ways, including bankruptcy, by individual voluntary arrangements or by debt relief orders. Yesterday, national debt charity Debt Advice Foundation warned that many individuals reach crisis point before asking for help and urged people not to delay in seeking support.
Managing director David Rodger said: “The tough economic conditions mean more people are struggling to keep on top of their finances — with record numbers of individuals becoming insolvent.
“Being in debt can be very stressful and people are often unsure what they should do or who to turn to for support.
“Many delay asking for help, which unfortunately means their situation can spiral out of control.”
The number of people declared insolvent showed a general rise across the country last year.
In Bury, the 2009 figure was 422, compared to the 2008 total of 375. In Salford, 519 people were insolvent, compared to the previous year’s total of 501.
With continuing job losses, pay cuts and disposable income margins being squeezed, the charity is expecting the number of people tipping over into insolvency and needing advice to increase.
Debt Advice Foundation’s tips for people who are struggling with debt are don’t ignore the problem, evaluate your finances, set a budget and tell someone as it is important to seek help as soon as possible.
Debt Advice Foundation’s team of counsellors provides free and impartial advice. For more information, call 0800 292 2077 or visit debt advicefoundation.org/ help.
