Insolvencies 'will rise to 150,000'

31/12/2008

Personal insolvencies are to shoot to their highest-ever levels in 2009, KPMG has warned.

The accountancy firm said that 150,000 Britons would default on their debts next year, as the economy contracts, unemployment rises and budgets come under increasing strain.

Included in the total is bankruptcies and Individual Voluntary Arrangements.

The 150,000 figure would be the highest number yet measured since the Insolvency Service began taking records on the matter 48 years ago.

Mark Sands, director of personal insolvency at KPMG, said: "Too many people have borrowings that they have no realistic hope of repaying

"Any excessive spending over Christmas and at the New Year sales, especially where goods are paid for on credit, risks tipping even more consumers over the edge."

KPMG also said that they estimated around 104,000 people had become insolvent in the UK this year - due in part to adverse economic conditions caused by the credit crunch.

Tags; Housing Debt and Bills, Credit Card Lifestyle,

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