Personal insolvency decline welcome, but struggling households need breathing space

3 May, 2013

Following the release today (May 3) of the latest insolvency statistics, StepChange Debt Charity director of external affairs Delroy Corinaldi said:

“While the decline in the numbers of personal insolvencies is welcome, the figures still remain well above the long-term average, as we continue to see the impact of the past credit boom working its way through the system.

“The declining levels of personal insolvency suggests that large debt levels may be declining. However, we know that the pattern of debt is beginning to change, as households are increasingly falling behind on priority living costs such as council tax, energy bills and rent.

“Against this harsh economic backdrop it is crucial that households are given financial breathing space and help to manage their debts in the short-term, however the blunt instrument of insolvency does not help consumers to address such problems.”