More than 10,000 a month go bankrupt

In the first three months of the year some 30,075 Britons have become insolvent.

This is 24 per cent more than in the same period last year.

Of the 30,075 people going insolvent, most (16,842) were declared bankrupt, ten per cent up on the same time last year, while 13,233 Britons took out individual voluntary arrangements (IVAs), up 48 per cent on last year's figures.

And with rising personal debt levels combined with increasing interest rates these figures have been widely anticipated.

"Today's 24 per cent rise in insolvency figures doesn't surprise us and reflects the increasing number of debt problems local Citizens Advice Bureaux deal with," said Sue Edwards, senior policy officer at Citizens Advice.

However she advised against people going bankrupt or taking out an IVA as an easy way out of debt.

"It is vital that people get independent advice before opting for bankruptcy or an IVA as their decisions will have long-term consequences," Ms Edwards advised.

However, despite rising debts, interest rates, and insolvencies, Britons are more confident about being in credit than ever before.

New figures from credit reference agency Experian show six million Britons do not worry about any personal debts worth less than £15,000, not including mortgages.

Additionally, fewer than one person in five (18 per cent) think being in debt is a social taboo.

"The fact that so many Brits are happy with unsecured borrowing of at least £15,000 may seem shocking on first sight, but the 'credit comfy' generation seems to have become anaesthetized to the real implications of mounting debt," said Jim Hodgkins, managing director of CreditExpert.co.uk.

"While many still see big debt as socially unthinkable, the reality is that an increasing number are finding it difficult to gauge when debt tips over to being unmanageable. With the current rise in interest rates, many will find that debt they blithely ignored is in danger of spiralling out of control."