Thursday 20th of August 2009
Glasgow has experienced the biggest rise in bankruptcies in Scotland.
The number of bankruptcy cases in the city increased from 675 to 1,298 during the first half of the year, representing a 92 per cent increase, Accountant in Bankruptcy - which administers personal bankruptcies in Scotland - revealed.
Louise Brittain, a partner specialising in personal insolvency with global accountants Deloitte, said one reason why debt was so high in the city is because of the culture of going out to eat and shopping, all funded by credit cards.
"With the credit crunch and more redundancies you end up with thousands of people who are unable to service their unsecured credit," she stated.
Using the ‘disposable income’ of credit cards often leads consumers into large amounts of debt.
Recent research from Sainsbury’s Finance found that a fifth of people in debt hide the full extent of their financial problems from their partners.
By Ashley Littley
- Alternatives to bankruptcy available, expert notes
- Bankruptcy 'should be a last resort' to tackle debt management issues
- Bankruptcy 'has improved attitude towards debt'
- Insolvency levels rising, figures show
- Negative equity leading to bankruptcy increase, says expert
- Bankruptcy taken by Celebrity Big Brother contestant Steve Baldwin
