Millions facing £10k or more debt says research

Around two million people in the UK have run up more than £10,000 on credit cards, overdrafts and homeowner loans claims research by debt agency One Advice.

Almost 500,000 of these people have unsecured debts of more than £20,000, said the research.

The 35-44 age group is the worst hit, with around 650,000 owing more than £10,000.

The younger generation is doing its best to narrow the gap however, with 200,000 18-24 year olds owning more than £10,000.

“It is worrying that so many people owe so much in unsecured debt. This seems to be rising, said Chris Holmes, chief executive of One Advice.

“With many unsecured borrowing products having high interest rates, many people are entrapped in debt, often only paying off the interest accrued every month as opposed to the capital they have borrowed.

“Those caught in this situation need to take action otherwise it is likely that they will fall further into debt.”

The research noted that it is not only banks who could stand to lose out on bad debts, with much of the borrowing owed to friends and family.

© Adfero Ltd

Leave a Reply

Your email address will not be published. Required fields are marked *