The number of people declared insolvent hit a six-year high in the three months to June as the squeeze from high inflation, meagre wage rises and benefit cuts hit the finances of low-paid workers.
Individual insolvencies totalled 28,951 in the second quarter, a jump of 4.4% on the previous quarter and 27.3% on the same period last year.
The Insolvency Service, a government agency, said it was clear the trend had been rising steadily since 2015 to reach the highest quarterly total since the first quarter of 2012.
It said the upswing was driven by a record number of people taking out individual voluntary arrangements (IVAs), where debtors agree to repay creditors some or all of what they owe.
Stuart Frith, the president of the ins…
Read the full article at: https://www.theguardian.com/money/2018/jul/27/uk-insolvencies-hit-six-year-high-as-record-number-take-out-ivas