Record low bankruptcies.

Scarab

Official figures released last month showed that bankruptcies have hit their lowest levels since 2004 as fewer people were declared insolvent in the third quarter of this year.

In view of the above, can there be any doubt that our consumer driven economy is now well on the way to recovery?

chewmylegoff

Record low eh? Oh I see a record since 2004...

How many IVAs were there?

nembot

Scarab wrote: »

Official figures released last month showed that bankruptcies have hit their lowest levels since 2004 as fewer people were declared insolvent in the third quarter of this year.

In view of the above, can there be any doubt that our consumer driven economy is now well on the way to recovery?

Yes clearly, try leaving the drugs alone for a few days.

Good news about fewer bankruptcies though.

shortchanged_2

Yes but there is also a marked rise in the number of so called 'Zombie debtors'. Basically those who can only afford to pay the interest part of their debts and no capital. They suggest this is as high as 1 in 6!!

That is quite a scary statistic. http://www.bbc.co.uk/news/uk-16063271

lemonjelly

chewmylegoff wrote: »

Record low eh? Oh I see a record since 2004...

How many IVAs were there?

Or debt relief orders?

One thing, in adviceworld there is always a tail off in debt statistics this time of year. Those knee deep in it think "ferget this, lets have a xmas blowout & sort it then". They buy christmas on the cards, then come into advice agencies to pursue bankruptcy or similar options.

In the last 3-4 years, the tail off in debt clients has not been as noticeable in comparison with other years. However, a lot of people still come in to book an appointment for january, as they know what is going to happen.

I guarantee that from late january, when the credit card bills pop through letter boxes, there will be a mini spike in insolvency applications.

macaque_2

Scarab wrote: »

Official figures released last month showed that bankruptcies have hit their lowest levels since 2004 as fewer people were declared insolvent in the third quarter of this year.

In view of the above, can there be any doubt that our consumer driven economy is now well on the way to recovery?

Hi Scarab, which planet do you hail from?

The UK are the most indebted consumers in the world. Rising numbers of people are unable to keep up with their mortgage payments or rents and many are struggling with fuel and petrol costs. Payday loans (with interest rates of over 1000%) are having a field day. Unemployment is rising and disposable incomes are falling.

Here on planet earth many would question the likelihood or desirability of a consumer driven recovery.