Over-55s worst hit by debt woes

Insolvency has been rising for the past few years

People over the age of 55 are having the most difficulty dealing with their debts, a survey from insolvency firm Thomas Charles suggests.

Nearly a quarter of over-55s with debt over £10,000 said that they are "quite likely" or "certain" to go insolvent.

This is compared to the one in 10 of 18 to 24-year-olds, with more than £10,000 debt, who say they will be insolvent.

On Friday, the government revealed that more than 30,000 people went insolvent in the first three months of 2007.

The survey's findings, that older people are struggling more with debt than younger people, echo earlier research from the Consumer Credit Counselling Services (CCCS).

The CCCS, a debt charity, said there had been a rise in the number of elderly people asking for help, with men over 60 owing the most.

HOW TO GO INSOLVENT Bankruptcy: the traditional way of escaping overwhelming debt. Ends after one year, but you are likely to lose all your assets including your house to pay something to the creditors IVA: A deal between you and your creditors, overseen by an insolvency practitioner. Less stigma, less chance of losing your home, but involves paying some of your debts in one go or over a number of years Q&A: Personal insolvencies

Insolvency rise

Over the past two years the number of people going insolvent has risen sharply.

There are two types of insolvency; bankruptcy and individual voluntary arrangements (IVAs).

The number of people going bankrupt has steadily increased but this rise has been dwarfed by growth in IVAs.

But in the first three months of 2007 the rate of increase in insolvency slowed.

"This is because some creditors are taking a hard line over IVAs and rejecting them," Pat Boyden, an insolvency specialist at PricewaterhouseCoopers, said.

"As for insolvency as a whole, borrowing on credit cards and loans has been fairly flat over the past year. Borrowing at Christmas was not as big," Mr Boyden added.