People in Wales have the lowest unsecured debt levels in Britain although they still have the same relative levels of IVA’s and bankruptcy to the rest of the UK. New figures from the Office for National Statistics (ONS) show that between 2008 and 2010, Welsh households had the second lowest percentage of households with liabilities and overall owed less money, circa £2,000. In comparison, the South East of England had the highest financial liabilities of around £4,000 per household, while the highest percentage of households with at least one type of financial liability could be found in London.
However, while the debt burden of Welsh households is less, they still have the same likelihood of taking our an IVA or declaring bankruptcy due to lower income levels. As income levels are quite low in Wales compared to the rest of the UK, if someone loses their job or their relationship breaks down the relative burden can be quite high.
An insolvency company spokesperson suggested “There’s the misconception that debt is due to someone going out and having a good spend on their credit cards and buying luxury goods they can’t afford. A closer look at the figures actually suggest that age-related commitments are more likely to be the cause. People between the ages of 25-34 are likely to get married, buy arimidex online a house, have children and incur costs associated with their upbringing, all generally expensive undertakings crammed into a short period of their lives. With salary freezes, high unemployment and a high cost of living associated with the economic crisis, it’s not hard to imagine that those with young families on the property ladder are juggling large financial commitments that bring them close to the financial edge frequently.”