Insolvencies 'peak at New Year'
The start of the year is peak time for insolvencies and bankruptcies according to new reports, after consumers spend excessively during the Christmas period and face insurmountable debts soon after.
Experts at AWD Chase de Vere state that if people spend more than they save during the festive season the threat of insolvency looms, posing significant financial trouble for unprepared consumers.
Subsequently many may find themselves with little option but to go insolvent at the beginning of the year.
Richard Sheppard of AWD Chase de Vere argues that the risk of overspending is always prevalent despite intentions to save.
"They have good intentions, but it never happens," he states. "Every year … spending always exceeds savings.
"February and March are probably the peak times [for insolvency]."
New research from R3 shows that younger consumers have the highest level of unsecured debt in the UK, with an average of over £20,300 among those aged 18 to 24, according to Business Credit Management....
Source: londonstockexchange.com
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