Friday 4th May, 2007 

With the amount of personal debt increasing by £1 million pound every minute it comes as no surprise that the number of personal insolvencies has rocketed.

In the first three months of this year more than 30,000 people have either gone bankruptcies or signed an IVA. This represents an increase of 1.2% from the previous quarter and a rise in 23% compared to the same time last year.

Given that last year was a record breaking year for insolvency with over 100, 000 being declared insolvent, these latest figures indicate that the amount of people with debt problems is not decreasing. The average debt of those who enter an IVA is £52,700 is more than twice the average UK wage of £23,000.

However, Pat Boyden, KPMG insolvency expert, raised concerns about what would happen should the predicted rise in interest rates occur, "Half a percentage point rise in rates would add £60 a month to a £150,000 repayment mortgage that could well push many people into insolvency."