How can we avoid growth in insolvencies?

The news that more than 10,000 UK citizens are being declared insolvent each and every month is a damning indictment of the boom and bust cycle ever present in the UK. Personal debt is now in excess of £1.5 trillion and more and more UK consumers are going to struggle in the months ahead. Indeed, while an average of 10,000 UK citizens were declared insolvent each month in 2009 this could actually rise in 2010.

There needs to be further education on the dangers of credit and loans although it has to be said that the problem is spread right across the UK population. It seems that the more money brought into the household the more money is spent and the more money taken on credit. Credit cards have become the scourge of many in the UK with rates higher than ever before and more and more people struggling to meet even their minimum monthly payments.

Indeed, those who manage to escape insolvency will be repaying their debts for many years to come and this will almost certainly cause a drag on the UK economic upturn. There is very little that the UK authorities can do at this moment in time except try to educate people on the dangers of pushing their own financial resources to the limit.