26-11-2007
PwC indicates possible rise in insolvencies for 2008
News by Adfero for Simply Business - independent providers of business insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Fresh data from PricewaterhouseCoopers (PwC) has indicated that the number of insolvencies in the UK could increase next year.
As a result of increases in mortgage interest rates, the accountancy firm has expressed concern that consumers may react by increasing levels of credit card debt.
Dubbed Precious Plastic, the PwC report highlights that the average Briton is in unsecured debt to a total of £33,000.
"There could be a spike in personal insolvencies next year as a result of over-borrowing by consumers," said the authors of the report.
However, Richard Thompson, a representative from PwC, added: "Banks are continuing to take action in response to the rise in consumer debt by tightening their credit acceptance policies."
The survey also identified that while the uptake in the number of individual voluntary arrangements has entered into a period of decline, this has been caused by processing delays and may later lead to an increase when the backlog clears.