A fifth of Brits ‘considering insolvency’

A total of 20 per cent of men are considering insolvency, compared with 17 per cent of women, according to debt firm Thomas Charles, which estimates there are 8.4 million Brits with unsecured debts of £10,000 or more.

Although the number of people saying they regularly experience problems paying off debts has fallen from 30 per cent in October to 23 per cent in January, the number of people who experience difficulties “quite frequently” and “most months” has grown from 28 per cent to 31 per cent.

The firm said that high levels of festive spending and the tendency to put off dealing with debt until after the new year are the main factors behind insolvency rises in the first quarter.

However, a gradual reduction in the number of insolvencies is expected in the remainder of 2007, the report stated.

Credit reference agency Experian has said that more than 100,000 individuals are likely to become insolvent this year, with the number of people entering into IVAs surpassing the number of bankruptcies.