The standard advice for repaying debt is to service the most expensive debt first, so reducing your interest charges. However, sometimes it’s a bit more complicated than that. What if you owe money to friends or family? Should they come before debts to a financial institution? Millionaire Artist ponders on this when deciding how best to use a ’spare’ thousand dollars.
The latest figures show yet another record high for individual insolvencies, with over 26,000 people entering insolvency in the second quarter of 2006 - the highest figureon record, and a leap of 66% compared to the same period last year.
New figures from Alliance & Leicester show that UK consumer debt is falling in real terms for the first time in more than ten years. The report estimates that consumer borrowing, excluding residential mortgages, is growing at a rate of just 1.4% - less than inflation, resulting effectively in reduction of borrowing.
The number of home repossession actions has risen by 22% compared to last year, according to new figures released by the government. The report also shows a rise of 15% between June and October compared to the previous quarter.
Debt management company debts.co.uk has reported a huge rise in annual profits, up 62% to £2.1m off revenues of £6.1m.
The company says that it is currently handling around 140 IVAs (Individual Voluntary Arrangements) each month, and it expects the figure to rise to around 500 a month following an extensive advertising campaign.
Around a half of their customers take out IVAs, although the company also offers debt consolidation, debt management and bankruptcy advice services.
A survey by national charity Citizens Advice estimates that 770,000 Britons have missed one or more mortgage repayments over the past year, with many holding a mistaken belief that going into arrears didn’t pose a risk to their homes.
Debt advice and IVA company Debt Free Direct is upbeat about its future, saying that it expects to beat its forecasted profit of nearly £10m by at least 10%, a fact which highlights the increase in people seeking help for serious debt problems.
The latest figures from the Department of Constitutional Affairs (DCA) show that bankruptcy cases continue to rise in number, with court petitions up 10% in April to June 2006 compared to the same period in 2005.