OutOfDebtBlog.com

We’re now 3 days into 2007 - and already articles about peoples overspending over the Christmas/sales period is starting to hit the news. I find this a bit disturbing.

Where as my family managed to get through Christmas without sinking deeper into financial trouble, it would seem that a lot of families in the UK are in for a tough start to the new year.

According to the BBC, over the next 3 months 30,000 people will be forced to declare themselves insolvent. Put in another way, that’s 333 people who daily comes to realise that they are not making enough money to pay their bills, and will have to declare themselves bankrupt or enter into an IVA (Individual Voluntary Arrangement), which is a formal alternative to bankruptcy.

The year 2006 has seen more than 100,000 personal insolvencies. This number is set to rise in 2007. This is mainly due to the increasing tren of increased borrowing and spending, higher interest rates and bigger utility bills.

Grant Thornton, Accountants

Knowing what pressure I find myself under, with being able to pay my monthly bills, the thought of what those people going through these processes must be feeling makes me sick.

Granted - in 90-something percent of these cases people landed themselves in situations like this - but still, it’s a bad situation to be in.

I hope they will learn from their experiences, and start educating themselves financially. If the school system would have done that in the first place, cances are that most of them wouldn’t have found themselves in such a mess.

Technorati Tags: Overspending, Bankruptcy, Debts

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