ENJOY ;-)...............................
Pushed over the edge
By SEAN POULTER, Daily Mail
4th February 2006Banks and financial companies are tightening the screws on customers, causing a dramatic surge in bankruptcies and home repossessions.
Figures show a 45 per cent increase in personal insolvencies, including bankruptcy, during 2005, taking the total to 67,580.
An increasing number of women and students are opting for this dramatic step.
At the same time the total number of householders who lost their homes to debt rose 70 per cent on 2004 to reach 10,260.
The figures are the tip of the iceberg as tens of thousands are also behind on debt and mortgage repayments.
More than ten people have taken their lives in the past two years because they could not cope with their increasing debt.
The figures follow a five-year credit and spending binge which drove Britain's personal debt to more than £1.1trillion.
The Liberal Democrat shadow chancellor Vince Cable warned: "These figures all show very worrying trends. The pincer movement of rising unemployment and record levels of personal debt is spelling catastrophe for many hard-working families."
The increase in debt troubles follows more than two years of complaints from MPs and consumer groups that banks have been lending recklessly. There is evidence that financial giants offered credit cards and loans to customers without making proper checks on their ability to repay.
The figures, published by the Government and the Council of Mortgage Lenders, point to a rise in the number of bankruptcies and home repossessions towards the end of 2005.
In the run-up to Christmas, 20,461 people were declared insolvent, the highest figure for any three-month period since records began in the
1960s.More are opting for a so-called Individual Voluntary Arrangement, a legal agreement to repay creditors that is regarded as one stop short of bankruptcy. The average debt for this group is £60,000.
The head of personal insolvency at KPMG, Steve Treharne, said: "The bankruptcy bubble is getting bigger.
"The levels and availability of credit have been increasing for some time... The more people incur credit, it is inevitable that this will be followed by increases in personal insolvencies."
He added: "Nearly 900 former students were so desperate they decided that bankruptcy was the best option for them. Clearly, this is not the best start in life for a graduate."
While there has been a sharp rise in home repossessions, the total of
10,260 is still well below the all-time peak of around 70,000 in 1991.The figures also show the number of families falling behind on home loan repayments is rising.
Those who were three to six months behind rose 21 per cent to 32,470 at the end of 2005, while those who were more than 12 months in arrears rose 23 per cent to 13,820.