However, company administrations and personal insolvencies are at their lowest level for a decade.

The number of individuals who were declared insolvent in England and Wales decreased for the fourth successive year in 2014, to the lowest total since 2005, according to the Government’s Insolvency Service.

Company administrations also fell last year, to an 11-year low.

R3, the insolvency trade body, has commented that the combination of low interest rates and falling inflation was reducing the impact of debt problems on businesses and individuals.