Complete freedom from debt for all persons is an impossible dream. Some people have little money sense and buying on credit is almost like an addiction. And where there are people willing to take out loans, credit cards, and other forms of borrowing, there are companies all too willing to extend credit to them.

Credit in itself is not wrong. All of us to some extent use credit. Unfortunately millions of people in Europe have been facing increasingly tough times and are finding themselves in debt. Even some countries have faced bankruptcy and have had to take drastic measure to balance their books.

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Insolvency figures hit new high in first quarter

More than 35,600 people became insolvent in the first three months of the year – equivalent to 566 people a day – with the figure expected to rise higher

The number of people in England and Wales entering into insolvency rose to a new high in the first three months of the year, figures from the Insolvency Service showed today.

A total of 35,682 people became insolvent during the period, equal to 566 people a day. This was the fifth consecutive quarter during which the total has hit a record level, as increasing numbers of consumers struggle to keep up with their debts.

But there was better news on the corporate front, with total company liquidations falling by 4% compared with the previous quarter to 4,196.

Individual insolvencies were up 17.9% on the same quarter last year, and broadly in line with experts' expectations.

Beneath the headline figure, the number of bankruptcies rose by 7% over the quarter but fell by 10.7% year-on-year to 18,256, while the number of individual voluntary arrangements (IVAs) – where borrowers enter into an agreement with creditors to repay some of their debts – rose by 20.1% over the year to 11,782.

Debt relief orders (DROs), introduced in April last year to allow consumers with debts of less than £15,000 and minimal assets to write off their borrowing without entering into a full-blown bankruptcy, continued to rise with a total of 5,644 individuals opting to use one, a rise of 6% on the last quarter of last year.

In 2009, 134,142 individuals entered into insolvency and figures had been expected to remain high this year, despite recent signs the economy may have turned a corner.

Guardian.co.uk

Freedom completely from the debt is the good option. This is every person's dream. Article is really very fantastic.