Citizens Advice: Number of insolvencies ‘not surprising’

Francesca Hopwood-Road, a spokeswoman for the bureau, said that people in debt should seek advice to avoid adding to the two thirds rise in number of bankruptcies.

Speaking on BBC One’s Lunchtime News, Ms Hopwood-Road stated on the rise: “We are not surprised at all by this. Last year Citizens Advice saw 1.25 million new debt cases.

“What these figures show us is that it part of a wider trend.”

Her comments come as official figures reveal that the number of bankruptcies rose by 66 per cent on the same period last year and Individual Voluntary Arrangements (IVA) soared by 153 per cent.

Yet while Ms Hopwood-Road blamed easy credit for part of the problem, she advised people not to panic but to talk to their lender if they are experiencing problems repaying debt.

If not, she urged people in debt to seek advice and for those without current problems to think clearly about whether they can afford repayments before taking out a loan or credit.