Rising insolvency rates are “unsurprising”
Rising figures for insolvency in England and Wales are “unsurprising”, according to one debt expert.
Latest official figures suggest that the number of bankruptcies and individual voluntary arrangements taken out increased last year as people struggled to take hold of their debts.
Paul Bateman, a spokesperson for financial services firm KPMG, said that the average bankrupt could expect to have £46,587 of debt.
He told the Lancashire Evening Post that there was a 90 per cent increase in the rate of insolvencies last year, with bankruptcies rising in number by 14 per cent as well.
“With debt levels this high and four increases in interest rates in the past nine months, it is unsurprising that we are seeing more and more people choosing insolvency as the solution to their problems,” he continued.
The news comes as 80 per cent Britons admit to regularly overspending.
Research from Credit Experian suggested that the majority of Britons admit to spending beyond their means quite frequently.
People concerned about the level of their debts but who wish to avoid the stigma of bankruptcy, may take out an individual voluntary arrangement.
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