Fool.co.uk: consumers to heed the latest record bankruptcy figures

David Kuo, Head of Personal Finance at Fool.co.uk, says: “Today’s news that the number of personal insolvencies has risen to a quarterly record of 30,075 is a disappointment.

“However, troubled borrowers who intend using Individual Voluntary Arrangements (IVAs) should look beyond the headline numbers. There has been a telling slowdown in the growth of IVAs over the last four quarters, as banks clamp down on people who choose to go down this route.

“That said, debtors should always consider their options if they can’t cope. Other solutions include informal debt management plans, changing your spending habits and, as a last resort, bankruptcy, which may be the best route for some people.

“IVAs may be widely advertised as easy solutions for people in debt. But they cost money to implement, and that is money that could have been used to pay off your debts. They are not a solution to your money problems, that is, unless you happen to be an Insolvency Practitioner.”