Although there were less people entered into an Individual Voluntary Arrangement in the second quarter of this year than the first, on a yearly basis insolvency figures show a trend of increasing debt management struggles in the UK.
And the ifs School of Finance is convinced that this issue ought to be a priority for the government and that its education plans should incorporate the provision of personal finance lessons.
Rod McKee, head of financial capability at the ifs School of Finance, said: “The insolvency figures released today again highlight the need to ensure people have sufficient financial skills to make informed financial decisions.
“Equipped with such skills the number of people who find themselves facing unmanageable debt problems will reduce considerably.”
Credit Action figures showed recently that the average household debt outside of mortgage arrears in the UK stands at just over £8,840.