More borrowers struggling with repayments

By MoneyhighStreet Staff. Published on October 7, 2008 This post currently has no comments.

Big decision
More and more borrowers are falling behind on debt repayments, in the latest sign that demand for debt consolidation loans could soar this year.

According to research from MoneyExpert.com over the last six months 11 per cent of consumers have missed a credit card, loan or mortgage repayment.

Credit cards were found to be exerting the greatest burden on consumers with four million users missing a payment in this timeframe.
This equates to around nine per cent of the adult population.

Sean Gardner, director of MoneyExpert.com, said: "Interest rates may have been pushed down through 2008 but increased pressures from rising food and energy bills mean consumers are struggling to keep their heads above water.

"One late payment doesn''t represent a financial meltdown but when it becomes a habit there''s real room for concern. And the consequences, whether it''s losing a service altogether of even ending up in court can be very serious indeed."

The predictions come after a recent poll from Legal & General found that the number of people who spend more than they earn each month has risen to nearly 5.3 million.