Around “one million” near bankruptcy

Around a million people could be on the verge of bankruptcy, a YouGov poll has estimated, while another 700,000 struggle to clear their monthly debt payments.

A fifth of all adults in the UK ñ or eight million people ñ have unsecured borrowing of more than £10,000, the survey also showed.

Thirteen per cent of all respondents to the poll said that they were “quite likely” or “certain” to file for bankruptcy in the immediate future.

Breaking ranks with many analysts, James Falla of Thomas Charles, which commissioned the poll, said that this was due to the easy availability of best rate credit rather than irresponsible lending.

“The rise of the ‘credit junkie’ phenomenon and the ‘spend, spend, spend’ culture is a long-term issue,” he said. “This puts literally millions on the borderline.

“Our research shows an enormous uptake of unsecured debt in all areas: credit cards, personal loans, student loans, hire purchase and overdrafts.

“It needs addressing at grassroots level and that means via the educational system.”

The number of people filing for insolvency has already broken records so far this year, with 25,351 people filing for bankruptcy protection.

© Adfero Ltd

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