Britain’s debt management problems have seen an increased number of adults file for insolvency, a financial expert reports.

According to founder of freeivaadvice.co.uk, Phillip Beck, the social stigma around bankruptcy and individual voluntary arrangements (IVAs) has diminished leading more people to opt for these methods when they find themselves unable to make personal loan repayments.

He claimed bankruptcy "used to be something that people really didn’t want to get involved in even if it wasn’t particularly onerous for them but that has changed".

"The more people who actually commit to bankruptcy will report back to friends and colleagues who may be in debt and relay that the experience wasn’t all that traumatic. This may then persuade their friends to go bankrupt", Mr Beck added.

He also reported that an increasing willingness for borrowing has led to consumers to take on so much debt that they are unable to pay it back.

However, James Jones, consumer affairs manager for Experian, claimed that despite the popularity of IVAs, they are often not the best route for borrowers, with a debt consolidation loan often proving to be a better long-term option.

Interfinancial providing you with breaking debt management news.