Debt-management experts Bell & Company warn of dangerous debt trend currently plaguing British economy
With insolvency rates rising for the first time since just after the global financial crisis of 2008, debt strategists Bell & Company are warning of the reasons behind this worrying trend and how to avoid falling into financial trouble.
The credit crash of 2008 was partly caused irresponsible businesses lending money to consumers who didn’t have the ability to afford the repayments on what they were being lent. Worryingly, similar symptoms are now affecting the modern-day economy.
Britain’s overall consumer debt, which includes borrowing on credit cards, recently rose by 10%. This took the country’s outstanding stock of consumer debt over the £200bn ($260bn) mark for the first time since the global credit crash of 2008.
James Bell, Bell & Company Managing Director, said: “These figures are extremely concerning. What we’re seeing is a repeat of what happened after the global financial crisis of 2008 when many people were facing huge financial difficulties.
“The amount of people becoming insolvent, or unable to pay back the debts that they owe, has risen for the first time since 2009 and in the first half of 2017 it was a tenth higher again.
“Many people are being tempted to borrow more than they can manage because of irresponsible lending, so we’d urge anyone with outstanding debts to exercise caution on what they’re borrowing and make sure they can pay back what they owe to avoid becoming insolvent.”
On August 22nd shares in Provident, a door-to-door lender, fell by more than 60% after it issued a dire profit warning. This was due to the debt collection firm being poorly managed; its collection rates slumped dramatically due to consumers being unable to pay back what they owe, pointing to lenders being irresponsible once again like they were before the credit crash.
Bell & Company are renowned in the UK for their specialized team of debt strategists that provide expert advice on personal and business insolvency.
The company has saved businesses and individuals millions of pounds on their debt repayments, and offers a free, no obligation consultation to anyone in debt or requiring an assessment of their finances.
James said: “Our advice for anyone who has recently become insolvent themselves, or had their business fall into insolvency, is to contact us and allow us to offer you the best guidance possible and find you a tailored solution to your debt troubles.”
The average rate of insolvencies per region is currently at 20 per 10,000 people, which is low compared with during the financial crisis when it reached over 30. However, in some areas of the UK insolvencies per 10,000 people is over 40, a statistic which companies such as Bell & Company find extremely unsettling.
For more information about personal or business insolvency or to get a free financial review, call Bell & Company on 02895 217 373 or email info@bellcomp.co.uk.