More than eight million Britons are in serious debt with a quarter of those regularly struggling to meet their monthly repayments. Around 18% of adults have amassed more than £10,000 in unsecured debt, such as on credit cards, store cards and loans, The figure was up from the 14% of people who owed more than £10,000 in April and the 13% of people who had amassed debts of this level 12 months ago. People living in Scotland are most likely to have debts of more than £10,000 at 19%, while those in the North are least likely to at 16%.

Research has found that:

• One in 10 Britons now owes between £10,000 and £20,000
• 3% owe between £20,000 and £30,000
• 5% of people have debts of more than £30,000
• Among those who owe at least five figures, 25% admitted that they frequently struggled to be able to meet their monthly repayments
• Men tend to owe more than women, with 13% of men owing more than £15,000, compared with 11% of women
• But despite this, women are more likely to struggle with repayments at 27% compared with 24% of men

Over the past year there has been a sharp increase in the number of people who have taken on unsecured debt and are now struggling with repayments. A record rise in house prices, especially in London and the South East, together with the increases in interest rates over the past 12 months has led to a growing discrepancy between mortgage payments and salaries. Many people, especially women, feel under pressure to maintain social and commercial status which is often reflected in high expenditure on the high street.

Many borrowers affected by the higher interest rates will encounter debt problems in the future - instead of reducing their spending they are taking on unsecured loans and using credit cards to finance their monthly expenditure.

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Article referenced from http://www.gm.tv/index.cfm?articleid=26543