Consumer debt circle widens
Published On 16 February 2007
The consumer debt circle is widening according to new figures, with 66 per cent of those already in debt opting to take on more. Figures from Moneysupermarket found that 13 million Brits in total (28 per cent) have taken out a loan to consolidate some of their existing debt.
Tim Moss, Moneysupermarket spokesman, said: "Debt has certainly become the common curse of modern times. Whereas 40 years ago being in the red was considered a last resort, it seems many of today's Brits are much more accustomed to taking on debt – although actually being able to control it is another thing.
"People need to be careful that the ease of getting credit does not catch them out. Taking a personal loan to consolidate debts can be a useful way for people to get their finances under control but a loan for these purposes should be considered carefully and only regarded as a measure for becoming debt-free - not as a license to go spending again."
And with 8.5 million Brits admitting they consolidated debt of some sort, there appears to be an increasingly lenient attitude to borrowing more funds.
Some 28 per cent of people admitted to building up debt on their credit card while 12 per cent opted to use their overdraft and 21 per cent used a mixture of both.
