More than a million heading toward bankruptcy says report

More than 1.1 million people are likely to seek bankruptcy protection or an Individual Voluntary Agreement (IVA) in the foreseeable future says new research.

The report found that 20 per cent of people with debts of £10,000 or more said that they were 'quite likely', 'very likely', or 'certain' to soon seek protection from their creditors.

The figure is up from 13 per cent in March when 13 per cent said that they were heading toward bankruptcy, said debt consultancy Thomas Charles.

"Our latest research shows that the problem is here to stay and is set to continue to grow," said Thomas Charles director James Falla.

"With eight million adults having unsecured debts of £10,000 and over, our research shows an enormous uptake of unsecured borrowing across all areas: credit cards, personal loans, student loans, hire purchase and overdrafts.

"This puts literally millions on the borderline."

The situation was compounded today with an increase in interest rates likely to push those at the most risk even deeper into the red.

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