Many Brits worried about debt levels : Credit Card Guide

Many Brits worried about debt levels

According to the results of a recent survey many Brits are very worried about their debt levels, reflecting the debt crisis that has been growing in Britain for some time.

debt problems

According to the research carried out by Moneyexpert, nearly 2.5 million consumers in Britain are very worried about their debt levels and also about the prospect of increasing problems with debt that will come with further interest rate rises. However, despite this worry it seems that the debt problem continues to get worse.

The report showed that around a quarter of consumers in Britain had actually increased their debts in terms of credit cards, loans, and mortgages in the last three months. Over the last quarter around 7% of consumers stated that they had increased their borrowing by around 20%. The survey results showed that less than a quarter of consumers in the UK – around 23% - are actually debt free at present.

Sean Gardner from Moneyexpert stated: "With more than 2.48 million very concerned about keeping on top of their debts it is clear that there is a serious crisis brewing. Anyone who is very concerned about their ability to keep on top of their debts is heading for serious trouble if they do not take action now. There are, however, plenty of ways for people to get their debts under control from consolidating their borrowing to using the equity in their home through a secured loan. It is important that people act and do not bury their heads in the sand."

Although debt levels in the UK have risen, another recent report has shown that the number of insolvencies in the form of bankruptcies and IVAs has actually dropped in the second quarter of this year compared to the first quarter.

Tom Smith
27th September 2007

Recent additions:

Share this Story