Key findings of the survey were:
- A quarter per cent interest rate rise, forecast for November 2006, could leave 1.1 million on brink of insolvency
- 8 million adults have unsecured debts of £10,000 and over
- Of those, 49 per cent or 3.9 million people report that they have problems repaying their debts
- Almost a third of respondents (29.5 per cent), equating to 1.1 million people, will be pushed the brink of insolvency by a quarter per cent interest rate hike. (Thomas Charles online survey, September 2006)
- Divorcees are likely to be worst affected, with 44.4 per cent reporting that they will have to become insolvent or take out further debt in wake of an interest rate hike. Least affected are married individuals (9.8 per cent) compared with 28.3 per cent living with partner, 11.5 per cent single, and 20 per cent separated.
- Women are more likely to suffer as a result of the rise, with over a third (34.5 per cent) reporting that they will have to become insolvent or take out further debt, compared with one in five (20.8 per cent) of men.
James Falla, managing director of Thomas Charles, said of the latest stats: “In August of this year, it was found that individual insolvencies were up 10 per cent on last quarter and 63 per cent on the same quarter last year. When interest rates rise, increased mortgage payments put many under serious financial pressure and management of unsecured debt is bound to suffer. If November does indeed see a quarter per cent interest rate hike, these results would suggest that we will see the rate of personal insolvencies spike to a level not seen before in Britain.”
