Bankruptcies Reach New High in UK

The scale of the debt crisis among young people “addicted to credit” emerged yesterday after figures showed the highest number of bankruptcies for more than 40 years.

Data from the Council of Mortgage Lenders yesterday (Feb 3, 2006) showed a continued sharp rise in the number of home repossessions. These rose to 10,250 in 2005, the figures showed, up by 70 per cent from the previous year. It was the fastest rise in the figures since the end of the last recession in 1991. Low interest rates and a healthy housing market have encouraged consumers in recent years to rack up debts of more than £1 trillion.