The recession began in 2007 and since then the economy has gone from bad to worse.  There has been steady improvement over the past year however, with inflation climbing people are anticipating a double dip recession. So, what does this mean?

Many financial experts are warning there is a high probability that people who are in debt but not dealing with their money worries could face more severe problems, such as insolvency, if there was a change, such as interest rates rising.

Recently we have experienced price increases from the “big six” energy companies, telephone providers along with both food & clothing costs rising faster than ever before. With all of these price increases you would hope that employment may help take some of the burden however that has not been the case as vacancies become less frequent and unemployment more common.

With all this doom and gloom you may be hoping there is a magic answer to all these problems, unfortunately the signs would appear to show things getting worse before they get better.  The signs show that the last quarter saw the second highest level of people entering a protected trust deed since the recession began and remember those were the figures prior to any price increase from utility companies.

There are a number of different types of insolvency and it can depend on where in the UK you stay as to what insolvency solution would be applicable. Insolvency debt solutions would include;

England, Northern Ireland, Wales

Bankruptcy

IVA

Debt Relief Order

Scotland

Protected Trust Deed

Sequestration

LILA

Certificate of Sequestration

Many people who have mortgages have been helped by having low interest rates, however if inflation continues to rise the Bank of England will be forced into raising interest rates and many of the people who are being squeezed financially  could be pushed into an insolvency solution.  Interest rates rising would mean people have less money to spend and their total debt would increase at a faster rate. People in debt and finding it difficult to make ends meet should speak to a debt advice charity.

One of the best debt advice charities based in the UK is Debt Support Trust who can offer both telephone and internet debt advice. If you want to know which debt solution you are applicable for then you can contact them on 0800 085 0226 or visit their website:http://www.debtsupporttrust.org.uk