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Consumers 'still seeking help with debt'

06 January 2010

Consumers are seeking help in their thousands for debt management problems every day, according to new research.

Figures from financial charity Credit Action showed that every day, 1,000 people have a debt rescheduling plan put in place and 9,300 seek advice from the Citizens Advice Bureau.

The body said that in the year to November 2009, the overall level of UK debt owed rose by 0.7 per cent.

This included a 0.9 per cent rise in the amount secured on residential property, while unsecured borrowing dipped by 0.5 per cent, making the overall total £1,459 billion.

The average household owed £57,888 including mortgages, or £9,016 if these were discounted, with £181 million being paid in interest each day.

Debt management problems are always greater at the start of the year, when people have just spent heavily on Christmas, according to head of credit cards at Nationwide Building Society Richard Napier.

He noted that 60 per cent of loans issued in January last year were to consolidate existing borrowing.

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