An expert in the financial industry has recently spoken out about personal insolvency in the UK, stating that it is wrong for this course of action to be stigmatised in the way that it often is. Ed Bowsher from Lovemoney.com said that for many people personal insolvency was the only option.

Over the past few years a rising number of consumers have been hit with financial problems as a result of the global financial crisis and the recession, which has led to a restriction in funds and credit as well as many job losses. As a result of this many have had to take on more debt in order to fund even basic living costs in some cases.

However, whilst there are a number of solutions available for those that do have debts that they are struggling to repay some of these solutions – namely personal insolvency – comes with a huge stigma attached. With so much stigma attached to personal insolvency many of those that may have considered looking into this measure may end up being too scared or embarrassed to do so.

Bowsher said that it was wrong of people to stigmatise personal insolvency because for some people it really was the only effective option that was available, but as a result of the stigma consumers were failing to help their own financial situations by opting for personal insolvency.

Since last year the number of personal insolvencies in the UK are said to have increased by around 18 percent, and his indicates that more and more people are realising that this is the best course of action for them. However, officials have warned that personal insolvency is not something that should be entered into lightly as it can have a profound effect on a consumer’s financial future.