YouGov Survey Results: 700,000 Hidden insolvencies

The latest figures from YouGov demonstrate that over 700,000 people who are technically insolvent are currently being left off the official insolvency figures even though they are technically insolvent.

The reality of debt for Britons is over 1 million are insolvent in the UK – a number which testifies to the prevalence of debt issues confronting so many people today.

Though the 700,000 who are off the registers but are following a Debt Management Plan do not fall into the official figures, there are as many people who are not even making it onto these “hidden” insolvencies but are struggling with debt repayments without resorting to relief procedures such as Voluntary Insolvency Arrangements (IVA's) or other debt management systems of relief, including bankruptcy.

The sheer size of the numbers involved of insolvent and high-debt carriers underpins the glaring need for debt advice to be taken as soon as an individual realises they have an issue. The Insolvency Office and every major non-profit and commercial debt advice organisations all agree – the sooner advice is sought and taken the sooner the person will be free from the constraints debt creates.

Unfortunately, too many individuals still feel that there is a stigma attached to seeking insolvency measures which further fuels the hidden numbers of technically bankrupt people. With the aftermath of the economic downturn yet to filter through into the consumer and household budgets, these numbers are all set to rise across the board for some time yet to come. This has prompted calls for greater allocation of resources to debt charities however, like elsewhere they are facing the same budget cost cutting exercises virtually every other agency and sector are having to deal with at a time when they are needed the most.

This only makes it doubly important you seek advice from an unbiased and professional source as early as you can.

Useful link: What is an IVA