Bankruptcy cases increase in England

The number of people declared bankrupt/insolvent in England and Wales in the third quarter of 2005 is at its highest record.
The Department of Trade & Industry figures showed 17,562 personal bankruptcy cases. This is an increase of 46% from the previous year.

Experts say it reflects the higher level of debt that has been taken on by the public.
Before April 2004, anyone who was declared bankrupt typically had to wait at least three years before they could be discharged. Now this time limit is reduced to just one year. Could this be a new trend of change of attitude in the new generation, that it is alright to be bankrupt and be in debt. The debt way of life seems to be for those under 25.


Some say that the ease of obtaining a credit card is to be blamed. Credit cards have blurred the distinction between borrowing and spending and for many young people, student loans have made borrowings normal.

The key to effective money management is time. The more time you are prepared to invest in managing your affairs the greater the return on that investment. Also the earlier you start managing your own money the more effective the process becomes. Too many people start that process too late in life. So rather than managing their money they end up trying to manage on the money they already have.

Some of the key money questions you have to ask honesty yourself is:
- What are your financial goals?
- When do you want to achieve them? At what age?
- What money do you have now?
- What risks can you take?