/24-7PressRelease/ - LONDON, UK, December 06, 2006 - According to accounting firm Baker Tilly, the number of U.K. residents facing insolvency will exceed 100,000 in 2006. U.K. consumer debt averaged 3,500 pounds per person in 2005, according to a Nov. 13 report by the New York-based accounting firm PricewaterhouseCoopers LLP. This figure is more than the combined figure for France, Germany and Italy. As of now, U.K. consumer debt is lower than the United States of America, where average debt per person is 4,000 pounds per person.
As per U.K. government's Insolvency Service estimate, there has been a 65% raise in defaulters within the past nine months. More than half the filings were Individual Voluntary Arrangements, or IVAs, which let borrowers consolidate debt and typically spread payments over five years.
Banks are ignoring their own culpability in Britain's borrowing binge, says James Falla, MD of Thomas Charles & Co. U.K. debt penetration equaled 104% of GDP as against 92% in the U.S. Bank of England Governor, Mervyn King in a recent press conference stated that although debt crisis is a matter of concern, but the figures shouldn't be seen as a major threat to the overall level of consumer spending. New laws have made it easier for people to recover from bankruptcy by shortening the insolvency period from three years to one.
About Debt-Consolidation-for-the-Stressed
It is one of the leading independent finance brokers offering various financial products, such as secured and unsecured debt consolidation loans, as well as bad credit and cheap credit loans. Debt-Consolidation-for-the-Stressed is regulated by FISA and holds a Consumer Credit License.
For more information visit: http://www.debt-consolidation-for-the-stressed.co.uk
Source for news: http://www.bloomberg.com/apps/news?pid=20601102&sid=a1oL1.Wlic80&refer=uk
---
Press release service and press release distribution provided by http://www.24-7pressrelease.com# # #
Read more Press Releases from Jake Nathan:Other Press Release Headlines:
