Insolvency experts warned last night that the problem of personal indebtedness was “spiralling out of control” after official figures showed record numbers of borrowers are losing the battle to keep up their payments on loans, overdrafts and credit cards.
Amid concern that Thursday’s increase in interest rates from the Bank of England will be the final straw for many struggling to keep up their payments, the government said a record 26,021 people gave up the fight and became insolvent in the second quarter of this year.
The 66% rise over the past year left insolvencies on course to break through the 100,000 barrier for the first time this year. But there are concerns that the official data only scratches the surface of a nation with debts in excess of £1 trillion.
Personal debt spiralling out of control