Bridget demands action as personal bankruptcies hit all-time high (Islington Liberal Democrats)

Islington Liberal Democrats <Islington_ld@cix.co.uk>

Bridget demands action as personal bankruptcies hit all-time high

February 11, 2005 5:02 PM

Figures released by the Department of Trade and Industry show that personal bankruptcies reached a record level in 2004 with an overall increase of 28 per cent over 2003. Figures for the last quarter of 2004 went up by 35 per cent. The overall figure was 35,898 of which 75 per cent was self-declared, which commentators said was the result of the spending binge. They anticipate that the number of bankruptcies could go up to 50,000 in 2005. This contrasts with the figures for company failures which fell by 11.1 per cent in the last quarter of 2004.

Liberal Democrat campaigner Bridget Fox says,

"Every bankruptcy represents a tragedy for the individuals concerned, misery for their families, and disaster for small businesses caught in their wake. It is a disgrace that the Labour government - despite its talk of prudence - has presided over a debt culture that is now out of control. The UK now holds half of all Europe's credit cards; as individuals, we are now over £1 trillion pounds in debt and we have one of highest levels of unsecured debt in Europe. British households now owe banks and other creditors as much as the total external debt of Africa, Asia and Latin America combined!

"Liberal Democrats have a positive alternative with a ten-point plan for tackling household debt, including cracking down on loan sharks and excessive interest rates on store cards. Our policies will result in a more stable way to borrow and invest, that will protect consumers from unsustainable levels of personal debt, and also protect the financial services industry, which is very important to Islington's economy, from the damage done by boom and bust."