Bank of England data shows personal debts have risen to levels unseen since the financial crisis, reaching more than £200bn. There was a 2.1% increase in debt relief orders – available to those who have a low income, low assets and less than £20,000 of debt – from June to 6,274. Adrian Hyde, of insolvency and restructuring trade body R3, said: “Falling real wages and exhausted credit limits may have helped to push personal insolvencies up again ... An interest rate hike could exacerbate problems for individuals with problem debt, as they may see an increase in their borrowing costs. The increase appears to confirm a change in direction from falling insolvencies between 2010 and 2016, according to Hyde.

Source: The Guardian October 27, 2017 12:17 UTC