More people are choosing to declare themselves insolventThe number of people going insolvent in 2006 is likely to have topped 100,000, official figures are expected to show.
Such figures from the government's Insolvency Service would set a new annual record for personal insolvency.
The last set of insolvency figures published, for the third quarter of 2006, showed a rise of 55% on the same three-month period in 2005.
Experts have blamed greater personal debt and more awareness of what insolvency involves for the rise.
"Consumer debt has more than doubled since 2000. Logically, the more people owe money the greater the number of debt casualties," Pat Boyden, a personal insolvency expert at accountancy firm PricewaterhouseCoopers.
"There are other factors at play too. People are more aware of insolvency, the stigma is less strong. In addition, it is easier to access insolvency than before due to the increase in companies offering Individual Voluntary Arrangements (IVAs)," he added.
The insolvency figures include people who went bankrupt and took out IVAs.
Most of the growth in insolvency has been due to people taking out IVAs.
Under IVAs the debtor - normally through an intermediary - comes to an arrangement with their creditor to pay back part of what they owe.
The debtor does not lose their home - as can happen under bankruptcy - but they can find that they have to live to a very tight budget, until their debts are repaid and their credit record is also damaged.
IVA providers have recently come under attack. Some lenders are unhappy that widespread TV advertising of IVAs may be encouraging more people to go down the insolvency route.
Thursday, 16 August 2007
Credit Searches.....don't cost the earth and can save you £1,000's
Credit Searches - BACK Report
You have no doubt heard that prevention is better than cure.
Now you have a way to check out your prospective customers and current customers to see just how an independant expert rates their ability to pay you as well as knowing exactly who you're dealing with and how they have been performing.
Many companies don't bother to credit check or only undertake a credit check when they start doing business.
When you trade on credit terms you're acting like a banker to your customers and you should know what risks you face from time to time. Would you expect a bank to lend money without checking out their customers ability to pay ?
It's also just as important to periodically check up on how your biggest or highest exposure clients are performing. Circumstances can change and you should know about these changes quickly so that you can adapt the customer's credit limits, credit terms or decide not to do business.
With incredibly low prices and instant access to most company reports you now have no excuse for not checking your customers.
With our credit reports and searches there are:
What are the prices?
Our service is one of the most competitive around. See below a list of the options available with prices and samples:
Limited company standard report, £4.99,
Directors report, £4.99,
Limited company detailed report, £9.99,
Non limited business report, £9.99,
Just go to www.back-report.co.uk for instant online credit reports.
You have no doubt heard that prevention is better than cure.
Now you have a way to check out your prospective customers and current customers to see just how an independant expert rates their ability to pay you as well as knowing exactly who you're dealing with and how they have been performing.
Many companies don't bother to credit check or only undertake a credit check when they start doing business.
When you trade on credit terms you're acting like a banker to your customers and you should know what risks you face from time to time. Would you expect a bank to lend money without checking out their customers ability to pay ?
It's also just as important to periodically check up on how your biggest or highest exposure clients are performing. Circumstances can change and you should know about these changes quickly so that you can adapt the customer's credit limits, credit terms or decide not to do business.
With incredibly low prices and instant access to most company reports you now have no excuse for not checking your customers.
With our credit reports and searches there are:
- No Contracts
- No Subscriptions
- Instant Delivery
What are the prices?
Our service is one of the most competitive around. See below a list of the options available with prices and samples:
Limited company standard report, £4.99,
Directors report, £4.99,
Limited company detailed report, £9.99,
Non limited business report, £9.99,
Just go to www.back-report.co.uk for instant online credit reports.
Even the big guys can get it wrong....
We just launched a new credit reporting site because the volume of collections cases we get where no effective credit search has been done is pretty alarming.
www.back-report.co.uk (more to follow later)
But it amuses me that the big guys have been getting their fingers burned for just the same reasons. Take a look at this !
The European Commission is to review the credit rating industry after suggestions the sector was too slow to warn on the US sub-prime loans crisis.
With the weakness in the sub-prime mortgage market sparking fears of a global credit squeeze, Brussels will probe the industry's voluntary code.
This code aimed to stop any conflict of interest over the fact credit agencies can be paid by the firms they rule on.
A Commission spokeswoman said it would look at whether legislation was needed.
Some of the largest credit agencies include Standard & Poor's and Moody's. Moody's senior managing director Frederic Drevon said the firm was "committed to continuing the constructive dialogue it has had with the regulators and policy makers".
Credit agencies work by determining the creditworthiness of a particular company or investment fund.
Their ruling helps determine how much interest the firm or fund in question will have to pay on funds they borrow.
The Commission's investigation will be led by the office of European Union Internal Market Commissioner Charlie McCreevy, who has responsibility for the financial services sector within the 27-nation block.
Its study is expected to continue until April next year at the earliest.
www.back-report.co.uk (more to follow later)
But it amuses me that the big guys have been getting their fingers burned for just the same reasons. Take a look at this !
The European Commission is to review the credit rating industry after suggestions the sector was too slow to warn on the US sub-prime loans crisis.
With the weakness in the sub-prime mortgage market sparking fears of a global credit squeeze, Brussels will probe the industry's voluntary code.
This code aimed to stop any conflict of interest over the fact credit agencies can be paid by the firms they rule on.
A Commission spokeswoman said it would look at whether legislation was needed.
Some of the largest credit agencies include Standard & Poor's and Moody's. Moody's senior managing director Frederic Drevon said the firm was "committed to continuing the constructive dialogue it has had with the regulators and policy makers".
Credit agencies work by determining the creditworthiness of a particular company or investment fund.
Their ruling helps determine how much interest the firm or fund in question will have to pay on funds they borrow.
The Commission's investigation will be led by the office of European Union Internal Market Commissioner Charlie McCreevy, who has responsibility for the financial services sector within the 27-nation block.
Its study is expected to continue until April next year at the earliest.
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