Need for debt management 'still high'

03/02/2010

The latest figures from financial education charity Creditaction suggest that debt management is in high demand in the UK.

New borrowing on credit cards, loans and overdrafts overtook debt repayments for the first time since June 2009. Unsecured consumer credit rose £52m in December, driven by credit card borrowing, the Bank of England said.

For the average household using unsecured credit, this meant a debt of around £18,722 excluding mortgages.

These figures have led to around a thousand people a day seeking some form of debt advice or debt relief to cope with their money worries.

With unemployment increasing by an average of 1,400 people a day last year, the numbers of people needing debt help are likely to remain high.

The Citizens Advice Bureaus alone dealt with 9,300 new debt problems every day in England and Wales.

Kevin Still, director of EuroDebt, commented: "Interestingly the average level of unsecured debt for people using credit has fallen below £20,000 to £18,722, which confirms that those who can clear debt are doing so.

"Unfortunately, for those in serious debt the average balances are increasing - our average level of debt for clients on a Debt Management Plan (DMP) is over £29,000."


Posted by Jim Mead

Tags; Budgeting Advice,

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