Debt picture worsens for Scots as bankruptcy jumps by 25%

Just days after it was revealed that Scottish people have taken on more debt than the rest of Britain, it has now emerged that bankruptcy cases north of the border have soared dramatically in the last few months. Accountant in Bankruptcy (AIB), the body responsible for personal insolvency in Scotland, recorded an increase of 25 per cent in the number of people filing or being pushed into bankruptcy in the last four months. A total of 5,000 people were declared bankrupt in Scotland between the months of April and June this year, a figure which is down 1 per cent compared to the same period in the previous year but is very worrying nonetheless. This increase mirrors the findings of similar research by the insolvency group R3, which revealed that 539,000 Scots have seen their debt problems worsen...

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Posted in: Bankruptcy,jumps,picture,Scots,worsens

Shoppers more wary of debt problems this summer, research shows

The latest statistics on shopping, spending and debt management have revealed that consumers were less likely to make big purchases last month (June 2011).The Nationwide Consumer Confidence Index came up with the data, which showed that both consumer confidence and spending dropped in June, despite it rising in May around the time of the Royal Wedding, a period of sunny weather and an extra bank holiday.Consumer confidence dropped by four whole points last month, according to the UK’s third-biggest savings and mortgage provider, falling to just 51. Coinciding with this was a fall of six points in the Spending Index, which dropped from 80 to 74 in the space of a month.All of the latest statistics point to increased caution about spending amongst consumers, especially when it comes to larger...

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Posted in: problems,research,Shoppers,shows,Summer

Ballymena brothers banned from being company bosses after bankruptcy

Two brothers who ran businesses in the Country Antrim town of Ballymena in Northern Ireland have been banned from being company directors after they were forced into bankruptcy.Joseph and Gerard McLarnon were brother and business partners who ran a hotel management company called MCL Investments (NI), which formerly operated the Leighinmohr House Hotel in Ballymena. The hotel is still up and running, but is operated by another company. MCL Investments (NI) ran up huge debt problems under the direction of the brothers, and was eventually pushed into administration in summer 2009. The company had debt management problems in excess of two million pounds, whilst only having assets of £253,000. At the time it wound down and all of its debt problems were revealed, it was found that MCL Investments...

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Posted in: after,Ballymena,Bankruptcy,banned,being,bosses,brothers,Company

Football legend Colin Hendry discharged from bankruptcy

The retired Scottish footballer Colin Hendry has officially been discharged from bankruptcy, to the annoyance of creditors who will only recoup £36,000 of the £2.1 million he owes.Hendry, who formerly captained both Scotland and Blackburn Rovers football teams, was forced into bankruptcy in June 2010 after his debt problems spiralled out of control. The former defender was said to have turned to alcohol and gambling to cope with the death of his wife, Denise, in July 2009.By the time he was declared bankrupt, Hendry had racked up £1.3 million in tax debt problems with HM Revenue and Customer (HMRC). He also owed £35,000 to his brother, £10,000 to the parents of his late wife and £65,000 to his late father’s estate. A number of Hendry’s most pressing debt problems are said to have been caused...

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Posted in: Bankruptcy,Colin,discharged,football,Hendry,legend

R3 report shows Scots have greater debt problems than rest of UK

A new report produced by the insolvency trade body R3 has suggested that people living in Scotland are facing greater debt problems than anywhere else in Britain.The report, R3’s quarterly debt snapshot, showed that 13 per cent of Scottish people had taken on extra debt in the last few months, in the form of loans, increased overdrafts and credit card debts. In the rest of Britain, this figure was just 12 per cent.The research also found that 43 per cent of Scots struggle to make it to payday. Whilst this was 3 per cent less than the figure recorded for the rest of Britain, it was found that 200,000 Scottish people had taken out payday loans (small, short-term loans designed to cover the borrower’s bills and expenses until the next payday) to cover their budgetary shortfall in the last year.R3...

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Posted in: greater,problems,report,Scots,shows

Brits need to focus on high interest debts

There are many people these days who use any spare cash that they have into savings in order to ensure that they have some money towards their future – which is something that would normally be highly commendable. However, many of these that are saving their spare money are also struggling with a range of high interest debts such as credit cards, loans and store cards, which means that they are effectively putting money into savings accounts that earn them little or no interest whilst wasting money on huge amounts of interest on their debts because they are dragging the repayments out.One industry official has now said that it is important for those that have high interest debts to make sure that they put any spare money that they have toward repaying their high interest debts rather than...

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Posted in: Brits,debts,focus,interest

Scotland takes on more debt than rest of UK

A recent report has revealed a worrying trend of taking on too much debt in Scotland, with Scottish consumers said to have taken on far more debt than other consumers in the UK. The data came from the quarterly personal debt report released by the insolvency trade group R3. The data showed that Scots have been taking on a variety of new debts including debts from credit cards, loans and overdrafts.The data also showed how Scottish consumers were finding it difficult to make their money last from one payday to the next, with around 43 percent of Scots are said to be struggling to make their money last until payday. This figure is worrying but it was actually around 3 percent less than the rest of the UK.When it came to payday loans, the R3 report showed that in the rest of the UK there had...

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Posted in: Scotland,takes

Debt ridden parents raiding children’s savings

A recent report has suggested that many parents in the UK who are bogged down with debt and struggling to make ends meet financially are now having to delve into the savings that they had put aside for their children’s education in order to be able to afford bill payments and essential living costs.With the cost of living having soared to such a high level and with wages having been frozen for so many people, many households are now finding it increasingly difficult to cope with their financial obligations. The recent energy hikes will have simply tipped many households over the financial edge, which has resulted in many now having to raid money that they had put aside for the future of their children to try and make ends meet.According to the results of a recent study around 2.7 million...

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Posted in: childrens,parents,raiding,ridden,savings