There was an increase in the number of personal insolvencies during the first quarter of this year.
Statistics from the Insolvency Service show there were a total of 29,774 personal insolvencies during this period, up by 1.6 per cent on the previous quarter.
Furthermore, this marks a rise of 19 per cent on the same period a year ago, with 19,062 bankruptcies making up the total.
Individual voluntary agreements also saw an increase, up by 3.6 per cent on the previous three months and 11.8 per cent on statistics from 2008.
Earlier this month, David Kuo, head of personal finance at fool.co.uk, said people need to assess their personal finances thoroughly in order to avoid getting themselves into greater debt.
He believes that with credit being less readily available, people need to look carefully at what they have and take heed from businesses which have failed as a result of the lack of credit.
Many companies are resorting to "whatever lifelines they can get hold of right now", he added.