The DTI today publishes its highest-ever record of personal insolvencies since records began 45 years ago.
In the three years to June 2005, 15,394 individuals were declared bankrupt increasing 11.7 per cent on the previous three months and up 36.8 per cent on the same period last year.
Also, the total amount of personal debt in the UK now reaches 1 trillion – equivalent to 18,454 for each person.
Corporate insolvencies are also on the increase, rising 12.5 per cent on the previous quarter to 3,342 liquidations since mid-2003.
The DTI figures released today were analysed by Grant Thornton’s recovery and reorganisation practice.
Grant Thornton personal insolvency specialist Mike Gerrard says: “The UK’s mountain of personal debt continues to have no peak in sight. The problem rests squarely on excessive credit and store card use, personal loans, and often unsustainable champagne lifestyles.”