According to the figures, a record 33,073 people in England and Wales were declared insolvent in the second quarter of 2009.

This represents a rise of 9% compared with the first quarter of 2009 and 27.4% more than in the same period a year ago.

Meanwhile, the number of companies going bust in England and Wales continued to decline, falling by 14% compared with the first quarter but 23% higher than in the same period last year.

1,529 other companies collapsed in the second quarter of the year, comprising 345 receiverships, 1,027 administrations and 157 company voluntary arrangements.

Mark Sands of the insolvency experts, Tenon Recovery, comments: “Overall personal insolvency levels will continue to increase throughout 2009, with a record level of 140,000 or more expected by the end of the year.”

On 6 April this year, the Debt Relief Order (DRO) was introduced – an alternative to a traditional bankruptcy proceeding. There were 1,978 DROs in April, May and June.

DROs are available to borrowers with debts worth £15,000 or less, assets of less than £300 and surplus income of less than £50 per month.

According to the Consumer Credit Counselling Service (CCCS), debt advice charity, DROs are the “best solution” for many people in debt.

Malcolm Hurlston of the CCCS explains these will eventually outstrip bankruptcies. “As a result, total bankruptcies may soar, but that will be good news rather than bad, since many more people in serious debt will have found the right solution.

“In the past, stigma and cost have put people off going bankrupt, in circumstances when it would have been best for them and neutral for their lenders,” added Mr Hurlston.

The DMP initiates with your debts. If you are heading for a debt management organisation they will check out for:

• How much you we and to whom like your lenders, types of credit, your balance, financial status as well as your account numbers.
• They will find out your monthly income and expenditure such as salary, benefits, rents, bills, household expenses etc.

After all these investigations, the debt management organisation will now find deal with your creditors thus explaining them the entire situation. A well balanced DMP will reduce your overall debt amount, freeze all your interest charges, reschedule your repayments so that you get ample amount of time to pay off and an agreement that will cease any legal action against you.

There are many advantages of a DMP:

• In a DMP, you do not need to deal with your creditors directly and stress yourself.
• A debt management company does all the dealings on your behalf.
• A DMP helps you to balance your finances much more easily.
• In a DMP, you can pay according to your means.
• Your social life will not be affected.
• Your debt situation will never become a public affair.
• A DMP will never have any impact on your credit rating.

If you are a debtor with more than £8000 debts, then you should consider a DMP. At first get hold of a well to do counsellor and set up a DMP according to your means. You can go for a DMP, if you:

• Owe debts to your creditors.
• Your total debt amount is more than £8000.
• You have more than two creditors.
• You should be able to pay £100 every month (minimum) to pay off your debts.
• You should have a sound financial status unlike in a bankruptcy.

However there are a few disadvantages of a DMP:

• Your creditors can turn down your offer to reduce your payments.
• It may be so that the creditors change their mind even after accepting the DMP.

• Often creditors accept DMP only for a short term assuming that your financial situation will get better very soon.

While you are heading for a debt management company, you must be alert from fraud cases. You must choose one with a proper accreditation. Remember debts can be erased but cannot fix it quickly. So beware of companies that offer debt solutions in a little time. Get in touch with your advisor and make the right choice. Do not run away from debts. Face it and fight off debts with a good DMP.

So, if you own a home of your own, you can take out a secured debt consolidation loan. If you don’t have a home you still qualify for a debt consolidation loan that is unsecured. You need to have a good credit rating. Nevertheless, these unsecured debt consolidation loans can be taken out by consumers that don’t have a good credit rating too.

Unsecured debt consolidation loans attract very high interest rates. This is because you don’t use security for taking out the loan. So, if you have a good credit rating, you may enjoy lower rates. Having a good credit rating signifies that you have a good repayment capacity and that the chances of falling behind on payments are less. But if you have a bad credit rating, it is just the reverse and you prove to be a risky borrower for the lender.

When you take out a consolidation loan, you replace your multiple debts with a single debt account that makes your debts manageable and affordable.

Unsecured debt consolidation loan is also available online

You will also find unsecured debt consolidation loans online. There are many lenders that have their websites and offer you online loans. You will have to provide details about your residing place, interest rates attracted by your individual debts etc. Undoubtedly getting unsecured debt consolidation loan online can be very advantageous because it saves you a lot of time and trouble of looking around for lenders. You may also find unsecured debt consolidation loans that are less expensive these days. However, many lenders will want you to have a good employment history along with a good credit rating.

“We are in a position now where people are more concerned with paying off debt rather than saving,” he said.

This is a far cry from previous years, when our culture demonstrated a more nonchalant attitude towards debt and is a much more sensible approach to take, Mr Stevenson stated.

He continued: “What’s the point in getting one per cent interest on your savings, when you’re paying 18 per cent on your credit card bill?”

A survey undertaken recently by Nationwide found that 56% of consumers think saving is a good thing, while just 16% said saving in the current climate is a good idea.

For help or advice on how to pay your debts in the quickest and most efficient way and at an ammount you can afford contact Clark Richards Financial Management on 0800 988 359

 The value of debt pursued through letters before action also increased, by 38%.

Charles Wilson, Lovetts chairman and managing director, said: “Claims through the courts are a last resort and yet we have seen a massive increase in the volume of debt being pursued. This clearly shows an increased focus on getting debts paid, which should encourage other businesses to take similar action.”

Court action is always avoidable if you seek professional advice upon receipt of any debt recovery letters or demands. Clark Richards can help stop court action and provides solutions to all forms of debt.

Halifax, Britain’s biggest lender, is charging customers £100 to put struggling borrowers in touch with a debt advisor similar to Clark Richards, who can sometimes help them with their personal finances. The Halifax argues that it is just passing on the fees of the debt advisor to the customer and not making a profit but as Read argues, those who are struggling with mortgage repayments or credit card bills can least afford to depart with another £100, a sum that could probably go a long way to addressing debt repayments.

Going direct to Clark Richards means consumers will not incur any upfront charges or Fees. Call free on 0800 988 3359 for further information.

Statistics from financial information service Moneyfacts have uncovered that, despite an expanding number of deals on the market, more than two-thirds of the 1,485 mortgage offers currently available require customers to put a minimum 25% deposit on their new home.

Property prices are now falling due to the credit crunch, which means theoretically more families in the UK can afford to purchase a home.

However, maintaining high deposit levels make it increasingly difficult for potential buyers to obtain a mortgage.

Around 13 deals currently available require a deposit of 5% or less, whilst the number requiring a 25% deposit has risen from 545 to 603. 413 mortgage offers require a 40% deposit, an increase from 376 last month.

Several lenders are only offering their 90% or higher mortgages through a broker, which makes rates less appealing to would-be homeowners in comparison to a lower loan-to-value product.

Despite the mortgage market remaining tight, recent figures have shown that the number of property purchases has risen slightly in recent months as lenders succumb to government pressure to increase the funds currently available to Britons.

According to a leading price comparison website, 51.6% of savers in the UK have no idea how much interest they currently earn on their ‘rainy day’ money.

Over the past six months the Bank of England has cut the base rate from 5% to 0.5%, meaning savers have seen the level of interest generated by their accounts drop dramatically.

Almost half (48%) of those questioned in the Uswitch poll claim they cannot remember what interest rate their savings provider offered when they opened their account, let alone recall what interest they are currently making.

3.7 million Britons say they have not attempted to check their current savings rates as the information will prove too depressing.

Rumina Hassam, personal finance expert for Uswitch, said:

“Over the last six months the Bank of England base rate has been cut six times from 5% to an all time low of 0.5%, and there have been concerns over a savers’ revolt. This has been further fuelled by figures which indicate that savers have withdrawn £2.3 billion from banks in January. It is of little wonder therefore that more than 22 million savers have no idea what level of interest they currently earn on their main account. “

“What is concerning is the sheer number of savers who have become so despondent by the effects the base rate cuts that they have absolutely no idea about what level of interest they are earning. Whilst this consumer sentiment is understandable, this kind of apathy will play into providers’ hands. If savers don’t vote with their feet and move their money away from poor performing accounts provider will just carry on as they are.”

The survey by travel insurer LV= claims that 25% of Britons will take their main break in the UK in 2009, whilst a further on in eight (15%) are sacrificing their summer holiday altogether in order to make ends meet.

Around five million adults that plan to stay in Britain have attributed their decision to financial concerns – 16% admit they cannot afford to go abroad, with an additional 13% blaming unfavourable exchange rates for shunning a foreign vacation.

Londoners are the most concerned with the state of their bank balance when it comes to leisure time, as 59% say financial concerns have led them to choose a British holiday this year.

LV= claims that choosing a UK-based break will save holidaymakers around £250, as the average adult plans to spend £477 on a British holiday in comparison to the £728 they would have spent going abroad.

Worryingly, five million Britons have indicated that they will cut back on travel insurance in 2009 in order to save precious pennies, whilst 22% of those that want to make savings plan not to take out any kind of insurance for their summer break.

The latest data from the Society of Motor Manufacturers and Traders (SMMT) claims that the number of new UK registrations fell by over 100,000 in March to 313,912 cars. This is particularly bad news for vehicle production as March is the month in which new car registrations come out.

SMMT Chief Executive Paul Everitt has called on the government to boost consumer confidence by introducing new measures such as car scrappage schemes, where motorists are paid to trade in their old cars in order to purchase a new one.

Everitt said:

“The UK is the only major European market not to implement a scheme. It will provide the incentive needed and the evidence is clear that schemes already implemented across Europe do work to increase demand.”

In comparison to the UK’s falling sales figures, Germany boasted a 40% rise in the number of new registrations last month and French vehicle purchases have increased by 10% since adopting a scrappage scheme.

Several dealerships have claimed that motorists are increasingly turning to second hand vehicles, in order to purchase a particular make or model at a lower price.