According to the latest figures published by the government’s Insolvency Service a record number of individuals in the UK are struggling to keep on top of their debts. The situation in the UK has gotten to a stage where around 70 people an hour are being declared insolvent. This is a pretty scary statistic as it equates to just over one individual per minute becoming insolvent in the UK. The report suggests that in the first three months of this year around 30,000 were declared insolvent, a 19% increase over the same period a year ago. It also represents the highest reported rate in almost half a century.

When one looks at the number of businesses going to administration the picture is as bleak. For instance, over the same period the number of companies that folded rose by 56% to just under 5,000 compared to the same period a year ago. These statistics are a real indication that Britain is still suffering from the effects of the credit crunch and recession.

According to Key Retirement Solutions, the number of people opting for equity release plans may well rise on the back of this harsh circumstance. They suggest that as people struggle to pay off their monthly expenditures, equity release may become a real option for many people. There is certainly merit in this approach as equity release could allow one to get access to cash when it is most needed. It acts as a mechanism through which one can turn an illiquid asset into liquid cash to service one’s debts. However, like any financial product careful consideration should be given and appropriate professional advice sought after, before signing on the dotted line.