Bankruptcy rates hit 45-year high
The number of people declaring themselves bankrupt in England and Wales has hit a 45-year high, says the Department of Trade and Industry.
Experts are warning that growing consumer debt is becoming a problem, and they are urging Brits to consolidate debts before bankruptcy is the only option.
There were 15,394 individual bankruptcies in England and Wales between April and June this year, according to figures out today, the highest figures levels since records began in 1960.
The figures have increased by 11.7 per cent on the previous three months, and insolvancy is 36.8 per cent higher than in the same month last year.
Howard Archer, chief UK economist at consultancy firm Global Insight, said that with the Bank of England cutting interst rates, more people will be encouraged to borrow, which could lead to more problems. He also said that the 'softening' of the labour market could put more people at risk of bankruptcy.
'This situation is at risk of spiralling out of control. Whilst we welcome government initiatives to address the debt time-bomb, these solutions will take years to show any impact. Consumer lenders and individuals need to take stock of this black cloud of debt and act now to do something about it,' said KPMG's Mr Treharne. | 
