Why have we not heard of an increase in bankruptcies?
The obvious conclusion when the economy slows down to the extent we are seeing today is that bankruptcies and serious financial troubles will happen almost immediately. However, this is not the case as many issues we are seeing at the moment will take time to filter down to the person on the street. Many will try to hang on for as long as possible before giving up the fight and seeking assistance or being forced into actions such as bankruptcy.
There is always a substantial lag between a failing economy and rising bankruptcies numbers and we will probably see bankruptcies start to kick in very soon. The numbers are also likely to continue to rise even when the economy starts to recover as more and more people realise they need help with their finances. In Scotland we will see an increase in Trust Deeds, which are the equivalent of bankruptcy in England, in line with the rest of the UK although the Scottish economy has its own issues which include a new local tax system which is set to hit many ordinary tax payers very hard.
Life is tough in the UK and while it is fine to soldier on for as long as you can, people need to take advice where required for their own peace of mind if nothing else. Financial pressures are very stressful and can cause untold damage unless they are confronted head one.
Share this..
Related stories
Looking after the kids
At this moment in time a great number of adults up and down the UK are struggling to meet the everyday cost of living with very little money left over for savings. However, when the UK economy finally does recover and the employment market picks up again there will be money for discretionary spending or discretionary saving. So how can you look after the kids for the future?
More an...
Postal workers union takes on Royal Mail
Bill Hayes, the Postal workers union leader, has today set the cat amongst the pigeons with a comment that he is "stronger than Scargill" which is a direct comparison to Arthur Scargill who was the bane of the UK government in the 1980s. This will do nothing to improve the reputation of the Labour Party which is effectively at the beck and call of the unions due in the main to the party's difficul...
Read MoreCould BP become a bid target?
As the oil disaster in the Gulf of Mexico looks set to continue until at least August the impact upon the share price of BP is there for all to see. The shares have fallen from 650p to 430p wiping billions off the value of the company. Estimates regarding the overall cost, including compensation and fines, of the oil disaster in the Gulf of Mexico vary between a couple of billion dollars to upward...
Read MoreHousing repossessions set to hit 75,000 in 2009
The Council of Mortgage Lenders in the UK has today come forward with a forecast that housing repossessions in the UK will hit a massive 75,000 in 2009. This appears to be confirmation of earlier speculation about the level of repossessions in 2009 and appears to blow open the government's claim to be tackling the problem with its recent mortgage relief program. If these figures are correct they w...
Read MoreUS banks hit for six by new government penalty fees
US banking giants have reacted with fury to today's announcement from president Obama that he will be trying to push through a "financial crisis responsibility fee" which could cost some of the US's largest banks as much as $2 billion a year. The proposed fee is intended to ensure that taxpayers in the US are repaid the $117 billion which the US government is expected to lose from the bailout of t...
Read More