Consumer debt up 30%

By MoneyhighStreet Staff. Published on September 16, 2008 This post currently has no comments.

Credit cards
Personal debt levels has roared over the last year, it has been revealed, as more and more Britons struggle to cope with soaring living expenses.

Research conducted by fairinvestment.co.uk found that, at the end of August this year, the average consumer''s debt not including mortgages stood at £5,886.

This figure represents a 30 per cent increase from the same month last year - when a similar study from Credit Action calculated the average Briton was facing a combined credit card, store card and personal loan debt of £4,524.

The rise has been attributed to the soaring cost of living, which has forced consumers to rely more and more on borrowing to make ends meet.

Matt Edwards, spokesperson for fairinvestment.co.uk, said: "As people contend with rising fuel and food costs, it is no surprise that they have to borrow more.

"However, the downside of this will be the interest rates that could soon eat into people''s pockets, as credit card and loan rates have risen considerably since the credit crunch began last year."