According to ifs, there were 27,644 individual insolvencies in England and Wales in the third quarter of 2006, something which includes both Individual Voluntary Arrangements (IVAs) and bankruptcy.
“These figures are yet another aspect of the disturbing trend of increased debt problems across the UK,” said Gavin Shreeve, chief executive of the financial education charity.
Ifs adds that this is an increase of 5.7 per cent on the previous quarter and an increase of 55.4 per cent on the same period a year ago.
Mr Shreeve called on the government to educate people on debt management.
In addition he urged better financial education at schools to ensure that the next generation of consumers does not grow up as badly in debt as the current population.