Insolvencies to rise following Xmas overspend
Published On 3 January 2007
Around 10,000 people will be forced to declare themselves insolvent following a period of unwise overspending during the Christmas period, a new report has found.Figures from accountancy firm Grant Thornton discovered that with an increasing trend for higher borrowing and spending as well as higher interest rates and larger utility bills, many consumers are overstretching financially.
On top of the 10,000 consumers who were pushed over the edge by Christmas spending, Grant Thornton predicts a further 30,000 insolvencies by the end of the first quarter of 2007.
Mike Gerrard, Grant Thornton spokesman, said: "Last year, during the period straight after Christmas, when most bills started to hit the doormat, we witnessed the highest ever amount of people going into personal insolvency.
"We regularly see people, especially over Christmas and with the start of the sales, add to their problems in quite a substantial way. This year, things could be even worse."
There were around 100,000 personal insolvencies in 2006 – a figure which is set to be increased in 2007.
