Despite the tough economic climate, latest figures have shown that fewer people are declaring themselves bankrupt.
There were 27,390 individual insolvencies in England and Wales during the second quarter of this year, down by 10.2% on the same period in 2011.
The number of bankruptcies and Individual Voluntary Arrangements (IVAs) fell significantly to 8,088 and 11,346 respectively.
The introduction of Debt Relief Orders (DROs) is thought to have had a positive impact on the volume of bankruptcies.
Introduced in 2009, DROs can be applied for by those on low incomes who are unable to pay off debts of less than £15,000. The orders can be a cheaper option than declaring bankruptcy, which can cost hundreds of pounds.
The figures suggest that more people are taking measures to pay off existing credit and address their debt problems, as opposed to taking out further credit.
If you are dealing with debt, read our guide: 8 steps to getting rid of debt.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.