Shropshire insolvency figures at all-time high

The number of people filing for insolvency in Shropshire reached an all time high this year, according to new figures.

A debt charity has urged residents in the county to make a resolution this new year to keep their financial affairs under control, following reports of record levels of personal insolvency including bankruptcy, Individual Voluntary Arrangements (IVAs) and Debt Relief Orders (DROs).

The latest regional statistics show that 689 individuals became insolvent in Shropshire this year with fears the situation could get worse.

Debt Advice Foundation, a UK debt charity, is encouraging people in the area to give their finances a rethink, as households across the country face a challenging start to 2011.

David Rodger, managing director of the Debt Advice Foundation charity, said: "More and more people are facing financial hardship, and we are expecting to see a rise in the number of people needing advice for debt problems in 2011.

"With VAT increasing to 20 per cent from January, the New Year brings with it a rise in living costs for people in the UK — and this, coupled with the threat of further job losses, will put added pressure on household finances."

Unfortunately, many people may already have reached a financial crisis point.

Mr Rodger said: "Those who are already struggling with unmanageable debt should seek advice from a registered debt charity as soon as they can to find out what options are available and how they can get their finances back on track."

As families prepare to feel the "pinch" of 2011, Debt Advice Foundation has advised some simple ways for people to keep their finances in order.

Mr Rodger said people could trim their spending by making use of an online Budgeting Tool, provided by the foundation, that can calculate what a person can afford to save each month.

He said families and individuals should also make use of price comparison sites to ensure they get the best deals and reduce the cost of various essentials, such as energy bills and insurance.

Other methods include cutting down on credit by avoiding taking unnecessary credit or stretching finances.

People can access free advice on www.debtadvicefoundation.org/help or by calling 0800 2922077.

By Russell Roberts