Debt On The Rise
The Debt Counsellors released a new survey that suggests that more than 50 per cent of those seeking help with their debt problems owe more than £15,000. This is a £5,000 increase from a similar report published only four months ago.
The Debt Counsellors Annual UK Debt Survey 2007 reveals that 57 per cent of people who are actively seeking debt help owe between £15,001 and £100,000, and 12 per cent have accumulated debts of more than £50,000.
Women, 25 to 44, lead the group at 55 per cent.
Surprisingly, 71 per cent of debtors who need professional help do not carry a mortgage. Also, 71 per cent less than £20,000.
Credit cards still lead the way, causing the biggest problem, with 26 per cent owing between £5,001 and £15,000 on their cards. An incredible 13 per cent carry credit card debt of £25,001-£100,000. This is an unsecured loan that may carry interest rates as high as 20 per cent.
John Porter, a senior counsellor with The Debt Counsellors, says the new survey throws a revealing light on the causes of debt. Porter said:
“It is clear from looking at the results of the survey and comparing the levels of debt and income, many people are building up debts that are impossible to sustain.
“However, the positive thing is that these people have shown the good sense to get professional debt help, and anyone worried about their debts should do the same.”
“There are debt solutions for even the most serious cases and legal processes such as the IVA, or Individual Voluntary Arrangement, can often help people with debts of over £15,000.
“The best way to find out more about these debt solutions is to speak to a professional debt counsellor.”
If anyone’s looking for a good debt advice service I’d recommend Clear Start which I used recently and found to be very good. The people I spoke to were very knowledgeable and made me feel comfortable about talking about my problems.
Comment by Victoria — Thu 29th Mar, 2007 @ 5:43 pm