PricewaterhouseCoopers has warned UK consumers to take note of the warning signs from
analysts on personal debt.
According to the government's insolvency service 25,264 people became bankrupt or entered into an individual voluntary arrangement (IVA) during January and March in England and Wales.
The figures are a 1.7 per cent increase on the previous quarter, but a decrease of 13.2 per cent on the same period a year ago.
Charles Turner, director in business recovery services practise at PricewaterhouseCoopers said that personal insolvency figures are becoming "too high to be sustainable in the long term" for the UK economy.
"Consumers need to realise the consequences of entering bankruptcy or an IVA and the wide ranging impacts it can have on their lives. These can range from difficulties in getting a mortgage to not being able to make routine purchases," said Mr Turner.
He advised consumers to take a serious look at their personal budget, reign in unnecessary spending and budget within their limits.
The Press Association has reported that, according to
financial information website ive.co.uk and Tuxedo Money Solutions, around nine per cent of single people have thought about taking out an IVA compared to just five per cent of those who were married.
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