thousands to be hit by insolvency say National Homebuyers

Personal insolvencies are set to soar this year as Christmas debts, rising mortgage payments and soaring food and fuel costs take their toll on already stretched finances.

[ClickPress, Thu Jan 10 2008] That is the message coming form the accountancy firm Grant Thornton which said the total number of personal insolvencies will jump to at least 120,000 this year, almost triple the equivalent figure in 2004, when just under 47,000 people went bankrupt.

It revealed that more than nine million people in Britain are now struggling to pay credit card bills and mortgages, with the average owed by problem debtors hitting £30,000.

Mike Gerrard, the head of Grant Thornton's personal insolvency practice, said: "Sadly, many individuals spend up on credit at Christmas and pay no heed to the financial warning bells. Come January, they find themselves in a situation where previous financial woes are compounded by the bills arriving from the festive season and in these situations insolvency becomes the only way out."

In addition, as fixed rate mortgage deals come to an end an estimated 1.4 million people will have to pay more for their home loans - costing them an extra £150 to £250 a month.

Fast property sale expert Julian King from National Homebuyers adds, "It's too easy to get into debt. But there are available options to solve financial difficulty.

"The homeowner has to act quickly, rather than close their eyes and hope the problem goes away.

"Homeowners facing financial difficulty should consider one of the mortgage rescue schemes available. In most cases National Homebuyers are able to assist people in solving their financial concerns within a matter of days".

National Homebuyers is the UK's leading fast property purchase firm, guaranteeing to make a cash offer to purchase any property in the UK. The company is also the pioneer of Sell and Rent Back solutions, where the homeowner can sell their house, but remain living there as a tenant.