IVA expert, Sarah Walford, from revivalforyou.co.uk is warning that latest figures predict that thousands of people will be facing insolvency.
It is expected that a record number of people will become insolvent over the next 2 years.
Sarah Walford of REVIVALforyou.co.uk comments “Predictions are that the first 3 months of 2009 will see some 40,000 people entering into IVA’s (Individual Voluntary Arrangement), or going Bankrupt. This is more than 10,000 people in the same period last year”.
Rising mortgage costs will tip many families over the edge whilst many lenders have raised their rates by up to 0.75% despite the Bank of England cutting the base rate by 0.25%.
Sarah said “The average mortgage stands at £158,000 and energy and food bills are rising at an inflation busting rate. Many families will need to pay out at least £2,000 more a year to avoid going under”.