Insolvencies are stabilising

Personal insolvencies are stabilising, official figures have revealed to people looking for the best loan rates.

The Insolvency Service claimed that in the three months to June the number of personal insolvencies rose to 30,513, from 30,145 in the first quarter.

However, compared to this time last year, the total number of personal insolvencies has fallen by 12.2 per cent, and figures have been flat for the last nine months.

Furthermore, despite the slight rise, it is thought 2011 will see the lowest annual rates of insolvency since 2008.

There was a sharp fall in personal bankruptcies in the second quarter; however this was offset by rises in Individual Voluntary Arrangements and Debt Relief Orders, the figures show.

Nevertheless, Chris Nutting, at accountants KPMG, told the BBC that the figures did not reflect the reality.

"Our own research has found that over-indebtedness is also leading to an increase in the number of households setting up informal arrangements with creditors - such as debt management plans - in an attempt to settle debts," he said.

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2011-08-05 12:51:33 © Moneyextra.com