The latest figures from the Dept of Trade and Industry show yet another steep rise in the personal insolvency rate, with the first quarter of 2006 seeing 13% more then the last quarter of 2005, and a huge 73% rise over the same period 12 months ago.

A total of 23,351 people filed for insolvency in January to March this year, of which around a third entering into IVAs (Individual Voluntary Arrangements) with the rest going into bankruptcy.

Insolvency practitioners blame the rise, at least in part, on the full effects of Christmas spending hitting home combined with the ease of obtaining credit, with reports of one man running up a total of £180k debts on 63 different cards.

There were a total of 67,000 personal insolvencies last year, but many experts are predicting a new record this year, with over 100,000 filings being a possibility.

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