Philip Long, an insolvency practitioner with PKF Accountants & Business Advisers warned: “The Citizens Advice Bureau figures showing a 20% rise in the numbers requesting debt counselling reflects what I see and strengthens my opinion that insolvencies are on the rise again.
“Next to Christmas, the summer period is one of the main pressures people face to spend. Everyone likes a break and those in debt have more reason than most for wanting a distraction from everyday problems. The issue is whether they can afford it or whether any additional spending on top of interest rate hikes just makes their situation worse.
“The government’s second quarter insolvency statistics showed a fall in the numbers of people going bankrupt or taking out an IVA but, with the summer season over and no let up from the Bank of England likely, I predict the figures will be breach the 30,000 mark for the first time. Unfortunately the numbers are likely to continue getting worse rather than better.”
