The recent surge in insolvencies has reflected a wrong attitude to credit, an expert has said.
Insolvency practitioner and director at Vantis Business Recovery Nick O’Reilly said his firm had calculated that as many as 150,000 people may declare themselves insolvent, compared to the normal annual figure of around 20,000 when he started in the profession in 1980.
Commenting on the rise, he said: “That’s quite unbelievably frightening and just goes to show the boom of credit that took place over the last six to ten years.”
A change of attitude among the public is “long overdue”, Mr O’Reilly remarked, noting that the way people have approached credit has led to this rise in debt management problems.
However, consumers are now realising that too much borrowing is not a good idea, he observed.
Insolvency Service figures for the year so far have revealed that with one quarter’s figures left to declare the tally of insolvencies has climbed to 98,568.