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INSOLVENCIES ON THE RISE AMONGST BRITAIN’S MIDDLE-CLASS

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Throughout 2010, figures show that the biggest jump in personal insolvencies were amongst Britain’s middle-class skilled workers, while those on benefits are also struggling to stay afloat.

Credit reference agency Experian has found that city workers, retailers and other similar individuals accounted for 10.34% of all bankruptcies, including individual voluntary arrangements and debt relief orders taken out in 2010, 4.5 per cent more than in 2009.

However, those reliant on benefits are still most likely to go insolvent, according to Experian. Benefit claimants accounted for 8.1% of total insolvencies last year, despite making up just 4.52% of the UK’s adult population.

And it’s not just the middle-class and those on benefits in danger as our economy continues to falter. Young, single professionals and middle income earners just starting their careers make up just 3.99% of the population but accounted for 6.36% of those unable to repay debt in 2010.

“There are certain sections of society that continue to face ongoing difficulties. The recession hit different people and communities at different stages and some are finding it harder to shake off its effects,” said Simon Waller, Head of Collections at Experian in the UK and Ireland.

Those struggling with debts in the current economy should seek expert advice as soon as possible. Making sure that you address your finances sooner rather than later is the key to staying solvent.

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Written by Andrew Hodges

April 5, 2011 at 8:25 am

Posted in Comment, LinkedIn

Tagged with , ,

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