Following the drift of the UK economy into recession a sharp rise in bankruptcies has been reported in South East Cornwall.

Report in the South West Economic Review said insolvency rates have risen by up to 38 per cent in the Caradon area, the fourth highest increase in the UK.

The report added that the people are feeling the pains more because of low wage and high housing costs in the area.

According to Saltash Citizen Advice Bureau there has been an increase in inquiries relating to repossession and unemployment.

“We’ve also seen an increase in more affluent people who are in work and have a reasonable income but are finding it hard to cope with the rise in interest rates and the increased cost in living,” said manager, Christina Elia.

A debt caseworker at Saltash CAD, Brian Welsh, explained that the credit crisis has significantly impacted on the number of and seriousness of debt inquiries at the bureau since the summer of last year.