By Daniel Hunter

The rate at which Brits are becoming insolvent fell to an eight-year low in the year to September, according to the Insolvency Service.

Just 0.22% of the adult population become insolvent in the year - the lowest rate since 2006.

The number of people who went bankrupt was at a 14 year low, although this was largely due to people choosing other forms of insolvency. There has been a rise in the number of people using Individual Voluntary Arrangements (IVAs) or Debt Relief Orders (DROs), which can often be cheaper or cause less disruption to their home lives.

"Today's figures show that the personal insolvency rate is at its lowest level since 2006," said Graham Horne, the Insolvency Service's deputy chief executive.

"It is still important that people experiencing financial difficulties should seek early advice."

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