Insolvent arrangements on the up
There were 27,029 personal insolvencies in the second quarter, a 5.1% rise on a year earlier.
This was mainly due to a 20% jump in the amount of people entering into individual voluntary arrangements (IVAs) to a new record high of 14,571 according to the Insolvency Service.
While some people, who know about this sort of thing, reckon it was showing that creditors were more confident about recovering debts, others claim it was evidence that families were on the brink after years of low wage increases (if any) and jolly government cuts.
Bev Budsworth, from The Debt Advisor confirms this: "Aside from all the talk of economic recovery, it's clear that people are really struggling,"
"The acid test will be when the Bank of England starts to raise its base rate and people's mortgage payments follow suit."
She went on to say that hundreds of thousands of people were barely making debt repayments, as interest rates are still at 0.5%. Financial markets are likely to price in a rate hike before 2014 is up, due to economic growth.
Yet Matthew Chadwick, who is a business restructuring partner at BDO, thinks that with the economy looking healthier, those with bad debts were now more under pressure to pay them back, and so further gloom is ahead.
"A continuing rise in the number of personal insolvencies in the next 12-18 months is therefore likely. Today's rise in individual voluntary arrangements is typical at our position in the economic cycle and need not be cause for alarm."
Maybe not alarm, but not the best of news for families literally trying to get their financial head above the water.