Insolvencies up amongst the young

The numbers of young people struggling to pay back debt has had a sharp rise.

Insolvency rates amongst 18-34 year-olds are growing faster than any other age group, they shot up from 6.4 per 10,000 people in 2015 to 9.1 in 2016.

RSM says there were 25,250 personal insolvencies in England and Wales in the third quarter, up 7% – 3,800 bankruptcies, 15,150 individual voluntary arrangements (IVAs) and 6,300 debt relief orders.

In fact, the number of people going bust has risen for the first time in seven years.

The firm’s Alec Pillmoor said: “We’ve seen a slight spike in IVAs – particularly among the 18 to 34 age group.”

With an expected interest rate rise in the coming year this could spell trouble for the new generation. Decades of economic instability has allowed our young people to become complacent with budgeting and keeping up with repayments.

RSM concludes that it expects insolvencies to continue to rise into next year.


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