More than 8 million 'in serious debt'
Published On 3 August 2007
Eight million people in the UK are risking the need for IVAs and other debt management tools because of the level of their borrowing, new research suggests.Data gathered by Thomas Charles found that eight million people in the UK owe more than £10,000 and struggle to make the payments on this debt every month.
This represents 18 per cent of the population, up from 14 per cent just three months ago.
Furthermore, some consumers are in even more financial difficulty - with three per cent owing between £20,000 and£30,000 and five per cent in debt to the tune of more than £30,000.
"Over the past year, we have seen a sharp increase in the number of people who have taken on unsecured debt and are struggling with repayments," explained James Falla, the director of Thomas Charles.
"These high levels of debt are linked to the rise in interest rates over the year."
Figures released by Credit Action show that consumer debt in the UK increased by 10.2 per cent in the year to the end of June.
