Insolvency rate to reach 30,000 in Q1

The advisory firm says excessive Christmas spending will fuel at least a third of all personal insolvencies this quarter with rising living costs adding to the pressure. Grant Thornton expects the total number of personal insolvencies for 2007 to reach 110,000 and 120,000 in 2008. Personal insolvencies topped 100,000 for the first time in 2006. Mike Gerrard, head of Grant Thornton's personal insolvency practice, says: "Sadly, many individuals spend up on credit and pay no heed to the financial warning bells. Come January, they find themselves in a situation where previous financial woe...