A report from Thomas Charles has shown that around one million Britons are on the verge of bankruptcy as they struggle with five-figure loans and crippling debts.

Around eight million people, or one in five of the adult population, owe at least £10,000 and one in eight of those reported that they were ‘quite likely’ or ‘very likely’ to file for bankruptcy or seek a legal agreement to help manage their repayments.

The debt consultancy firm reports that the total number of bankruptcies could top 100,000 this year for the first time as the number of young people filing for insolvency doubles.

James Falla, director of Thomas Charles, said: “Our research shows an enormous uptake of unsecured debt in all areas: credit cards, personal loans, student loans, hire purchase and overdrafts.

“This puts literally millions on the borderline,” he added.

Government figures released recently showed a 73 per cent year-on-year rise in insolvencies in England and Wales earlier this year and a 13 per cent rise on the previous quarter.

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