Borrowers need to face up to debts, charity says

11/11/2009

British households have been urged to get a handle on their personal finances and drag themselves back into the black.

According to statistics released this month by Credit Action, the average Briton now owes £30,211, inclusive of mortgages, representing 111 per cent of average income.

Furthermore, with the figures also revealing that interest repayments on personal debt totaled £66.3 billion over the past year, the debt advice Foundation has called on households to get on top of their financial commitments and to seek out professional debt advice is necessary.

"The reduction in credit card spending by consumers in the last year has shown that habits are already changing," said the charity's managing director David Rodgers.

He added, however: "The habit of debt denial where people don't share their worries with their partner, family or friends and don't seek help for up to nine months after realising they have a problem is a habit we would like to see change within the next year."

Meanwhile, PricewaterhouseCoopers has reported that UK households are set to spend around £5,000 over the coming year on paying off their debts, excluding their mortgage commitments.

Tags; Income Worries and Debt, Young Family Finances, Credit Card Lifestyle,

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