15 January 2009
The number of people entering into insolvency is set to rise this year, a firm has predicted.
According to KPMG, the numbers will surpass 150,000 over the next 12 months.
The forecast includes consumers who are declared bankrupt, enter into an Individual Voluntary Arrangement (IVA) or enter into a Debt Relief Order.
According to Mark Sands, director of personal insolvency at KPMG, the high average level of debt in the UK indicates that too many people have borrowings that they have "no realistic hope" of being able to repay.
He added: "Any excessive spending over Christmas and [in] the New Year sales, especially where goods are paid for on credit, risks tipping even more consumers over the edge."
Recently, FinancialAdvice.co.uk suggested that many consumers will begin this year with financial problems which have been exacerbated by festive spending.
It said that, as a consequence of this, the demand for debt advice among British consumers will increase.
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