The number of people in England and Wales succumbing to bad debt last year passed the 100,000 mark for the first time since records began in 1960, official data showed today.
Personal insolvencies in England and Wales hit a record 29,804 in the final quarter of 2006, according to government figures, against an upwardly revised 27,828 in the three months to September and up 44.1 per cent on a year ago.
The number of insolvencies for the year came to 107,288.
Separate government data also showed mortgage possession orders - reclaiming a property for failure to keep up with home loan payments - jumped more than a fifth in the final quarter last year.
The figures confirm fears more and more Britons are spending well beyond their means and struggling to cope with debt in an environment of higher borrowing and living costs.
However, Bank of England policymakers say bad debts remain a social problem, rather than a policy one.