According to insolvency trade body R3 (the Association of Business Recovery Professionals), the latest insolvency figures, showing record insolvencies in 2009, are ‘just the tip of the debt iceberg’ – as almost one million borrowers are struggling with their debts without seeking debt help.

President of R3, Peter Sargent, said: “Even these record personal insolvencies are just the tip of a very worrying personal debt iceberg. What lies below the waterline is a much larger group who are sadly not facing up to their debt problems.”

R3′s research reveals that, besides the one million who are struggling without seeking help, a further half a million people have contacted their creditors informally for help after finding their debts difficult to manage.

The insolvency figures for the fourth quarter of 2009 show that there were 35,574 personal insolvencies in England and Wales – made up of 17,007 bankruptcies, 13,219 IVAs (Individual Voluntary Arrangements) and 5,348 Debt Relief Orders.

R3 estimates that the number of people finding their debts difficult to manage is around seven times the number of people in formal insolvency.