Personal Insolvencies Fall But Mask The Real Problem

May 29, 2013 - PRLog -- Bankruptcies have reduced by 20.1% to 6,919 in the final quarter of 2012 from 8,658 in the corresponding quarter of 2011. Individual Voluntary Arrangement (http://www.griffinandking.co.uk/personal-individual-voluntary-arrangements.php) (IVA’s) dropped to 10,986 in the same quarter from 13,027 in the corresponding quarter of 2011 – a drop of 15.6%.

These figures mask the enormous numbers of Debt Management Plans (http://www.griffinandking.co.uk/debt-management-plan.php) (DMP’s) that have been entered into in 2012. This debt solution is not a statutory solution and currently not recorded officially - it is difficult to get precise figures in respect of these plans.

Tim Corfield commented “the official statistics hide the fact that there are many household seriously struggling today. Over 150,000 people each year go into DMP’s which doubles the figures – and this is a growing trend”.

Debt Relief Orders (DRO’s) remained fairly constant with 7,397 in the final quarter of 2012 compared to 7,359 in the corresponding quarter of 2011.

Mortgage Freedom Day

According to the Halifax the 13th April is the point at which the average home owner with a mortgage will have earned enough to pay off the cost of the mortgage for that particular year.

For those who rent, the equivalent date is nearly a month later on May 12th.

Craig McKinley, Mortgage Director at Halifax said “for most home owners, mortgage payments are the biggest outgoing every month; knowing they have earned enough to pay off their mortgage for another year should be a reassuring thought”.

In London the ‘Mortgage Freedom Day’ according to the Halifax comes on May 11th as the average house price is so much greater.

This Mortgage Freedom Day is a copy of the ‘Tax Freedom Day’ which is the day when we stop working for the Chancellor and start working for ourselves. Last year ‘Tax Freedom Day’ fell on May 29th.

Tim Corfield comments “If we take the ‘Tax Freedom Day’ and add it to the ‘Mortgage Freedom Day’ there’s not much left of the year. What about a ‘Utility Payments Freedom Day’ or ‘Following the Wolves Freedom Day?!!’ which should take us nicely to the end of the year!”

Written by Tim Corfield

http://www.griffinandking.co.uk