On average two CCJs were registered for every 100 people aged 18 or over in England and Wales over the last 12 months, according to research by online credit report service MyCallcredit.

But in some towns the incidence was as much as three times higher.

Its research looked at the number of CCJs registered in England and Wales, by postcode, postal sector and postal town, and the characteristics of people who live in those areas, to determine the households and areas most at risk of defaulting on their credit commitments.

In the period May 2005 to May 2006 more than three quarters of a million CCJs were registered in England and Wales. Purfleet in Essex recorded the highest number of CCJs per head of population in a postal town (six for every 100 adults).

Callcredit director Mel Mitchley said: “Where you live can reveal so much about your life from whether you’re likely to have a CCJ to how likely you are to own a car or have access to the internet.

“Our research found that 55% of the population live in postcode areas where no CCJs were recorded in the last 12 months. We also found that those postcodes with the highest numbers of CCJs per head of population tended to share certain demographic characteristics. But a combination of record levels of personal debt combined with the recent interest rate rise could mean that over the next year we start to see CCJs in neighbourhoods that have so far been unaffected.”

More than 0.75 million CCJs were registered over the last 12 months; 20 CCJs were recorded for every 1000 people aged 18 or over in England and Wales in the last 12 months; 55% of the population live in postcode areas where no CCJs were recorded over the last 12 months; 30% of the population live in postcodes where between one and two CCJs were recorded over the last 12 months; 15% live in areas where three or more CCJs were registered in that postcode over the last 12 months.

Of the 20 towns with the worst record for CCJs over the last 12 months eight are in the Midlands while four are in the East, three in London, three in Yorkshire and the Humber, one in the North East and one in the North West.

Amongst the Midlands towns, there was a high concentration in the West; Birmingham, Wolverhampton and Bilston – all in the former industrial area known as the Black Country.

In Yorkshire, Scunthorpe had the highest density closely followed by Bradford and Dewsbury. In Bradford and Dewsbury there are many single people in terraced homes and almost twice the national average number collect unemployment benefits in these two post towns.

In Purfleet, the town with the worst record – three times the national average – the predominant socio-economic group is single home-owners and renters with pre-school age children.

Tilbury, the town in second place, is a port town in the South East. The town has a large proportion of people who are employed in unskilled or semi-skilled jobs at the port.

Mitchley said: “There are many factors which will affect whether someone gets into difficulty with debt but the geodemographic profile of where you live is clearly one of the indicators that lenders can use to support their responsible lending policies.”

More and more people are getting caught up in our ballooning debt crisis. One person goes bust every minute of the working day and home repossession applications show the biggest increase since the housing crash of the early 1990s.

The recent rise in interest rates can hardly have helped, especially as it followed record fuel bills and council tax payments.

More than 26,000 people became insolvent between April and June, according to the Insolvency Service. The figure brings the total this year to nearly 50,000. The number of insolvencies is expected to top 100,000 by January.

The Council of Mortgage Lenders reports that repossessions in the first half of the year were up by 76% to 8,140 - and further increases are expected.

Banks are keen to play down the repossession figures, and it's true the numbers are still relatively low. But they are an indication that ordinary families are beginning to struggle with debt.

Jump in insolvencies

The jump in the number of insolvencies is largely attributable to the rise in popularity of Individual Voluntary Arrangements (IVAs) - a sort of bankruptcy lite. The number of people entering into IVAs has rocketed by a record 153% to 11,105 in the second quarter of this year.

Cases of bankruptcy, on the other hand, dropped by 3.3% to 14,915 in the three months to June.

Mark Sands, director of insolvencies at KPMG, the consultancy, is not optimistic about the future. He says: "We are entering an era where personal insolvency is going to be an accepted part of everyday life. In the past few years there has been a complete change in people's attitude to credit."

We certainly seem happy to pile on the debt pounds. At the last count, we owe about £1,200 billion, or more than £1 trillion.

Banks must take their share of the blame for aggressive marketing and the supply of easy money. But we are also more comfortable than previous generations with the idea of borrowing rather than saving to fund our lifestyles. You want a new car? Sure, just take out a loan.

We also seem to be more relaxed about paying back our debts. The banks are bumping up their bad debt provision - and it's no wonder when insolvency seems an easy option for many people. But is it? Or are companies pushing us to go bust for their own interests?

How an IVA works

An IVA is a formal arrangement to pay off a portion of your debt over an agreed period - usually at least 25% over three to five years. You can only enter an IVA if you owe at least £15,000 to two or more lenders and the typical debt is £46,000. The interest on the debt is frozen and the debtor is declared debt-free at the end of the period.

An IVA must be set up by an authorised insolvency practitioner who will agree a schedule of payments with your creditors. The practitioner will also charge a fee. The fees vary widely but start at about £4,000. You might have to pay the fee upfront, although some firms will let you spread the cost over monthly instalments.

The number of IVAs could rise further still with plans to introduce the Simple IVA within the next 18 months. If you draw up an IVA, you must get agreement from the creditors who are owed at least 75% of the debt. A Simple IVA will mean you need agreement only from the lenders who are owed 50%.

Some experts fear that debt companies are pushing people into IVAs because they earn high fees. Paul Latham, finance director at Debt Free Direct, an insolvency advice group, says: "There are people in our industry who are not giving the best advice either for the debtor or the lender. Some advisers charge the debtor upfront to arrange an IVA, which is not refunded if no agreement is reached. That should be banned."

You should beware companies that promise to cut your debts by 75% or so. Such promises can be misleading because the creditors are unlikely to agree to such a chunky reduction in the amount you owe.

It is also quite common for an insolvency practitioner to put together unrealistic proposals - perhaps suggesting that the debtor makes monthly payments that he or she cannot afford. So the IVA fails. The client is then back to square one, but the firm still pockets its fee.

Debt advice

Consumer groups are worried that debt companies are pushing IVAs as an easy way to clear your debts. The Consumer Credit Counselling Service, for example, recommends IVAs only in about 3% of cases. Most people are advised to draw up an informal debt management plan to pay off the debt over time.

Beccy Boden Wilks of National Debtline says: "People considering an IVA should seek impartial advice, often available free, so they understand the implications and are aware of the alternatives. They should also check their insolvency practitioner is regulated - and ask about the fees."

An IVA does not carry the stigma of bankruptcy and is more flexible, because you do not have to hand over all your assets to a receiver. You can negotiate with your creditors so you might, for example, be able to save your home from repossession.

But you cannot walk away from your debts and it will certainly affect your credit rating. So you might find it difficult or expensive to get any kind of loan in the future.

When you are dealing with debt, there are no soft options.

Research at Dissolve Debt has shown that up to 1 million people are on the verge of declaring themselves bankrupt as they struggle to cope with thousands of pounds worth of debt.

Bankruptcy is an option that often has to be considered when an individual cannot pay their debts as they fall due. A first time bankrupt with debts will generally receive their discharge one year after the date of the bankruptcy order.

Bankruptcy is the most drastic method available for dealing with debts you cannot pay. It can however set you free from overwhelming debts so you can make a fresh start, and makes sure your assets are shared out fairly amongst your creditors. However there are many implications of bankruptcy. During your bankruptcy you will be subject to several restrictions, which can be avoided through an alternative to bankruptcy such as an IVA. Anyone can go bankrupt, and there are different insolvency procedures for dealing with companies and for individuals who become bankrupt.

Applying for an IVA is a regularly looked at as an avoidance from bankruptcy. The IVA enables you to cut your debts to an affordable level and clear them over a fixed period. The compromise should offer a larger repayment towards your debt than could otherwise be expected were you to be made bankrupt. You can even take out a fresh mortgage while in an IVA. What's more, it is a totally private arrangement - nobody needs to know about it apart from you, your advisors and your creditors. An IVA ensures that your home is protected and your job is not at risk and with Dissolve Debt an IVA can write off up to 75% of your debts.

There are so many advantages of an IVA. For example, there is not the stigma or the publicity that normally accompanies bankruptcy and the debtor can continue to trade in a business to generate money. It can give the peace of mind to have a fresh financial start.

The implications of bankruptcy are simple. Some of these disadvantages are: loosing control of your assets, not being able to act as a company director (if you wish to do so), being publicly examined in court and your credit being affected for many years after the annulment. It seems that as far as Dissolve Debt are concerned, the bankruptcy route could be very much avoided.

One in 8 of those with five-figure debts say they are 'quite likely' or 'very likely' to declare themselves bankrupt. Also, with an interest rate rise looking more and more definite, these figures are expected to grow. With the help of Dissolve Debt a growing number of people will be finding alternative ways to get themselves out of debt.

Do you currently have a credit card? If you do, then you are like most other individuals. Credit cards have increased in popularity over the past few years. Despite being popular, there are still many individuals who do not have a credit card. If you are one of those individuals, it is likely that you may have wondered if you need to have one.

Determining whether or not you need a credit card is a fairly easy process. To determine whether nor not you need one, you will need to examine your shopping needs and if a credit card may be required to fulfill those needs. Despite the fact that credit cards are increasing in popularity, there are a number of popular retail stores, hotel chains, and car rental locations that are beginning to accept other methods of payment.

If you are interested in shopping online, you may need to consider obtaining a credit card. A large number of online retailers only accept credit cards. Some online retailers are beginning to accept online checks or debt cards; however, this is something new. If you need to make a purchase now or in the immediate future, you may need to obtain a credit card to make that purchase.

While online shopping is the place where credit cards are most often required, you may also find that you need a credit card to rent a vehicle, reserve a hotel room, or make an airline reservation. You can make an airline reservation, book a hotel room, or rent a vehicle for any occasion, but most do so while on vacation. If you are interested in taking a vacation, at least someone in your traveling party should have a credit card. It may be possible to find an airline, hotel, or car rental location that offers alternative payment options; however, they are sometimes few and far in between.

The good news about shopping online or planning a vacation is that they are usually planned ahead of time. If you find that you need a credit card, you can often obtain one before you need to use it. Unfortunately, the same cannot be said for emergencies. Credit cards are nice to have in the event that something unexpected arises. These unexpected emergencies may include, but are not limited to, medical bills, car trouble, travel, and family problems.

When it comes to having a credit card, there are many individuals who are concerned with how they will use that credit card. Limiting your spending is often easier said than done. Unfortunately, there are many individuals who get into debt because they misused their credit card. If you are interested in only having a credit card for family vacations, online shopping, or unexpected emergencies, you are encouraged to select the right card. For you, the right card may be one with a low spending limit. A low spending limit may help to prevent you from using your credit card for purchases other than the ones you intended to have the card for.

Having a credit card is only a necessity if you will need to use one. There are many individuals, especially college students, who make the mistake of getting a credit card for just the purpose of having one. This is a mistake that results in financial problems for a long period of time, if not for a lifetime. Do not the same mistake. You are encouraged to examine your credit card needs; you may even find that you really don't need to have one after all.