Credit management and collection company Daniels Silverman has seen a massive 250% increase in the number of consumers it is collecting debts from becoming insolvent through bankruptcy or individual voluntary arrangements (IVAs) in the last 6 months.

Carole Hughes, managing director, Daniels Silverman, says: “People are really struggling to make ends meet and are resorting to extreme measures to try and get rid of mounting debt. The increase in insolvencies is worrying and is likely to continue as the costs of living and unemployment rises.”

Daniels Silverman has also seen a 400% rise in the number of consumers requesting additional time to pay their debts.

Hughes adds: “Becoming insolvent should be a last resort. As outgoings increase people are asking for much more time to settle their debts and are making low repayment offers of around £1 – £10 per month. Creditors are being more flexible about repayment plans and we encourage those struggling with repayments to discuss their concerns.”