The Consumer Credit Counselling Service (CCCS) said that 12 per cent of people with debt problems that came to see a counsellor in the first three months of 2006 were recommended to declare themselves bankrupt.
This is compared to some 25 per cent of people last year.
Of the people that went to see the CCCS, ten per cent were able to find a way to meet their contractual debt repayments, while there was also a marked decrease in those falling behind on their debt management repayment plans.
Malcolm Hurlston, chairman of the CCCS, said: “It is good news for lenders, as a greater proportion of people coming for counselling are able to make their repayments.”
However, the figures also showed that the average debt owed had increased by 7.5 per cent to £30,167.