RSM is predicting that official figures will show that around 25,250 people entered a personal insolvency process in the third quarter of 2017, an increase of nearly 7 per cent versus the same period last year and over 3 per cent compared to quarter two.

Ahead of the release of figures by the Insolvency Service on 27 October, the data from Tracker, RSM’s online early warning system, suggests that of the predicted personal insolvencies in England and Wales in the third quarter of 2017, 3,800 comprise of bankruptcies, 15,150 Individual Voluntary Arrangements (IVAs) and 6,300 Debt Relief Orders.

Alec Pillmoor, a personal insolvency partner at RSM said: ‘The figures for the third quarter are likely to show that personal insolvency rates have started to climb and we expect this trend to continue well into next year.

‘We’ve seen a slightly more notable spike in IVAs – particularly among young people, that being the 18-34 age group.

‘Last week, the Financial Conduct Authority revealed that over 4 million people in the UK are in financial difficulty, having failed to pay domestic bills or meet credit commitments in three or more of the last six months. This is extraordinary when you consider the country’s unemployment rate is at its lowest level since 1975.

‘Meanwhile, unsecured household borrowing continues to rise in double digit figures while stagnant wages are failing to keep up with inflation.

‘Add to this the prospect of an interest rate rise either later this year or early next and life could well get tougher – particularly for young people who have overstretched themselves and for whom a rate hike will be a totally new and unpleasant experience.’