There has been 66% increase year on year in the number of people being
made bankrupt, Department of Trade Industry insolvency figures for the second quarter of 2006 show.
Law firm Thomas Eggar recently conducted research amongst insolvency
professionals working for a range of firms including KPMG and PWC, which
revealed a 97% feel credit is too easily available. A further 95% believe that the reduction of the duration of personal bankruptcy has reduced its effectiveness as a deterrent to unsustainable borrowing.
Royal Bank of Scotland, Lloyds TSB, HSBC and Barclays have all reported a rise
in the number of consumers struggling to pay debts. The Bank of England raised interest rates to 4.75%, the firstmove in 11 months, which the DTI say will compound fears of further consumer-related debt problems.