As a nation, the UK has the most individuals in debt with the highest amount of debt. It is little wonder insolvency, repossession of homes and bankruptcy is so prevalent when you consider the fact that the UK residents have more debt than the rest of Western Europe combined. What is more elusive is the reason why UK residents have such a poor grasp on our finances. Many are now starting to suspect that a lack of financial training and education at school and in later life could be the reason behind the massive surge in insolvency across the UK.

Insolvency – Knowledge Is Power

With Christmas spending, the credit crunch and a slowing housing market all contributing to increased levels of insolvency and those filing for bankruptcy, it is important to look at the causes behind the problem. In this regard, all fingers seem to point a lack of education on how to control our finances and keeping our finances in check. Statistics from YouGov state that only 4% of Britons rate the quality of financial education in the UK as above average whereas 75% of those polled said that they had received absolutely no financial or money management training in school. Insolvency is an issue that will affect many in 2008 but it is generally believed that it is something that can be avoided by educating the nation better on how to invest and keep themselves solvent.

Insolvency – Playing The Blame Game

Whilst it is easy to blame insolvency and bankruptcy on a lack of education, the individuals concerned also need to take responsibility for their spending and ensure that they live within their means. Banks, too, must shoulder some of the blame as it is generally believed that many are being exceptionally irresponsible with their lending practices which results in massive unsecured debts and the spike in those experiencing insolvency, which is set to reach record numbers in 2008. So, it's clear that to avoid more insolvency and financial woe for the residents of the UK, there needs to be a massive emphasis on training people on how to control their finances more successfully.

Speak To Varden Nuttall About Insolvency

Varden Nuttall has been established for over 15 years and is dedicated to helping people in financial difficulty find a debt management solution through an Individual Voluntary Arrangement (IVA). Employing 90 people, including trained and skilled IVA administrators, we are one of the largest IVA companies in the UK and handle over 3% of all IVA applications. To find out more about the company, or to make an appointment to talk about putting an IVA in place, call us today on 0800 031 9802 or fill in our online enquiry form.