July 12, 2013 3:39 pm

Personal insolvencies fall in UK

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Personal insolvencies have fallen significantly since the early days of the financial crisis, as low interest rates help households to stay out of serious difficulty.

New statistics from the Insolvency Service show that between 2009 and 2012 the rate of insolvency has dropped from 30.9 per 10,000 adults to 24.5.

However, the Northeast continues to be disproportionately affected by debt, with an insolvency rate of 33.3 per 10,000 adults last year.

The Resolution Foundation warned this week that the scale of debt held by UK households would create widespread problems if interest rates were to rise.

It said that up to 650,000 more households would have to spend half their disposable income on their mortgage if rates rose by 2 percentage points.

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