Personal Finance and Investing

In the third quarter of the year 2008, it was noted in figures that the occurrence of personal or individual insolvencies had increased by 8.8 percent in comparison to the previous quarter. Additionally, the numbers in these figures for 2008 proved to be 4.6 higher than the third quarter from the previous year. These numbers are showing in relative clarity that the economies within both England and Wales are continuing to take a downward spiral along with a great deal of the rest of the world.

Bankruptcies have also risen in a similar manner with an apparent increase of more than 12 percent in comparison to the second quarter of 2008. Individuals are desperately seeking some form of assistance to help them recover from the blow of the current economic crisis. Both the economies in England and Wales are not capable of continuing this atmosphere of recession. The Bank of England, for example, is currently being called up on in order to put a stop to this air of slowdown in the economy. It has been surmised that the interest rates are going to be cut by a committee known as the Monetary Policy Committee. This is being done as an attempt at reducing the costs associated with borrowing. It is assumed that the economy in these countries is going to continue to deteriorate for as long as they continue to delay having done so.

The number of bankruptcy orders that involve self employed bankruptcies or trading debts have decreased to 11.2 percent, which is a decrease of 70 percent. However, the classification has experienced changes from how it had been noted back in the 90s. The problem is likely going to deteriorate further on an overall basis, simply because individuals who are self employed are relying on consumer spending in order for them to continue being successful. It has been expected for a while now that consumer spending will eventually fall quite sharply, and this is going to change the overall financial outlook to a poor one when it comes to small businesses and self employed individuals. The economy in its current state is feeling much worse than during any recessions from the past, and there doesn’t seem to be a single part of the economy that is performing beyond the others. The housing market is not even yet out of the words, as it continues to decrease because of falling housing sales as well as a steep reduction in the value of equity.

Right now too many companies are rightsizing, downsizing and outright filing for bankruptcy, and job security is virtually non existent. Being downsized is leading to taking jobs paying substantially less than before, and people are falling deeper into debt and the point of no return with every passing day. The unemployment rate is also worsening day by day, and this is not even accounting for individuals who have exhausted their unemployment benefits already but that are still out of work.

For more about the economic slowdown and its affect on personal insolvencies, visit Personal Insolvencies and the Current Economic Crisis.

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