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March 2 2011
Low incomes fuelling bankruptcy
Three quarters (17,605) of those recommended to declare bankruptcy by a leading debt
advice charity earned less than the average wage. The findings were part of Consumer
Credit Counselling Service’s (CCCS) Debt Dashboard for quarter four 2010 which
reviewed profiles of those advised bankruptcy as the best solution to their unsecured
debt problems.
The review found:
• It would take 43 years for the average bankruptcy client to repay their debts
• The average debt of a CCCS client recommended bankruptcy is £31,000 with
one in five owing more than £40,000 in unsecured debt
• Age is a factor as over half (45 percent) of people going bankrupt are over 40
with almost one in ten over 60
• On average, this group of clients earns just over £19,000 which is £7,000 less
than the UK national average of £25,900
CCCS recommends bankruptcy only when suitable and after all other options have been
considered. A client’s property can be at risk of forced sale so the review found that,
unsurprisingly, the majority (70 percent) rent their home.
Delroy Corinaldi, CCCS External Affairs Director said: “Overtime bans, wage caps and
forced shorter working hours are limiting the ability to maximize income. As limited
income is one of the key factors determining a bankruptcy recommendation so there is
likely to be a further rise this year.”
http://www.cccs.co.uk/Portals/0/Docu...ss-release.pdf
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Low incomes fuelling bankruptcy
Three quarters (17,605) of those recommended to declare bankruptcy by a leading debt
advice charity earned less than the average wage. The findings were part of Consumer
Credit Counselling Service’s (CCCS) Debt Dashboard for quarter four 2010 which
reviewed profiles of those advised bankruptcy as the best solution to their unsecured
debt problems.
The review found:
• It would take 43 years for the average bankruptcy client to repay their debts
• The average debt of a CCCS client recommended bankruptcy is £31,000 with
one in five owing more than £40,000 in unsecured debt
• Age is a factor as over half (45 percent) of people going bankrupt are over 40
with almost one in ten over 60
• On average, this group of clients earns just over £19,000 which is £7,000 less
than the UK national average of £25,900
CCCS recommends bankruptcy only when suitable and after all other options have been
considered. A client’s property can be at risk of forced sale so the review found that,
unsurprisingly, the majority (70 percent) rent their home.
Delroy Corinaldi, CCCS External Affairs Director said: “Overtime bans, wage caps and
forced shorter working hours are limiting the ability to maximize income. As limited
income is one of the key factors determining a bankruptcy recommendation so there is
likely to be a further rise this year.”
http://www.cccs.co.uk/Portals/0/Docu...ss-release.pdf
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