Rise in personal debt agreements add to concerns about UK debt

Applications for individual voluntary arrangements (IVAs) reach highest level since introduction in 1987

British households are increasingly struggling with problem debts, according to alarming official figures, in the starkest indication yet of the UK slipping into the red.

Government statistics for England and Wales show applications for individual voluntary arrangements (IVAs) - a means of managing personal debt - reached their highest level since they were introduced in 1987.The spike in their usage comes amid a 10.6% increase in wider insolvencies since the end of June.