The number of people declaring insolvency rose to more than 30,000 in the first quarter of 2007. This is a rise of 23.9% over the same period in the previous year and a record figure.

Many of these insolvencies are the result of an increase in the number of Individual Voluntary Arrangement. Many people have been persuaded that an IVA is an easy option to get out of debt from watching TV adverts and advertisements in the newspapers but the banks and financial institutions are hardening their line on IVA’s. The companies that encourage their use are being closely monitored by the authorities due to concerns that some of the advertising was misleading.

The rate of growth in insolvency is slowing a little which is very likely the result of the hardening attitude of Banks on IVA’s but the recent rises in interest rates with more rises expected will do nothing to reduce the problems for those people who are financially over extended and further increases of the numbers of people declared insolvent are a likely .

Money Magic: Seven Simple Steps to True Financial Freedom (Quick Reads)

If you are paying high interest charges on your credit cards and any other debts you have then you may wonder if there is anything you can do to reduce the cost and reduce your repayments. The increases in interest rates over recent months have added to most peoples monthly outgoings and, for some, will have made life rather more difficult.

You may be able to transfer some of the debt to a cheaper credit card with a balance transfer but you do need to check all the small print. Many credit cards will charge a transfer fee of around Read the rest of this entry

Money Magic: Seven Simple Steps to True Financial Freedom (Quick Reads)

The pound is hitting new highs. Inflation has risen to the point where the governor of the Bank of England has been required to write to the Chancellor to explain why inflation has risen so high.

Unemployment has risen slightly this month and we are also told that interest rates will be almost certain to rise again next month. Even more rises in the future are not ruled out either.

All of these factors combined will add additional pressure on the finances of householders’ income and spending. They might be just a blip in the smooth growth of the economy but they might signs that there may be troubles ahead.

The people who will be worried the least by such things are the ones who, own their own homes outright, or rent and have the money invested instead, those with no debts and those with a reliable income that is not dependent on a job and salary.

Those are fortunate people and few of us are in that position but we can work towards such a position by working to reduce our debts. Cutting back on the use of credit cards and repaying them as fast as possible will have an impact. Once credit cards are cut to zero you can then start working on reducing your mortgage and saving a lot of money in interest payments over the years.

It all makes so much sense yet few of us do it. Be one of those few who can lead a happier life by reducing the stress caused by debt. Read more about how you can achieve a better lifestyle for less money here…> Debt Reduction

Money Magic: Seven Simple Steps to True Financial Freedom (Quick Reads)