One third of people see personal debt increase

As most people know, the personal debt problem in the UK has become increasingly worse over recent year, and there are now many people that are experiencing great difficulties in terms of their finances as a result of rising debt and falling income. The soaring cost of living has added to the misery of the many people that are lumbered with unmanageable debt levels.

A recent survey was carried out in to the levels of debt amongst UK households and it emerged that many people had seen their personal debt levels increase over the past year alone. In fact, one third of consumers are said to have seen their personal debt levels, which does not include any mortgage debt, increase over the past year.

Of the one in three people who said that their personal debt levels had increased over the past twelve months around 10 percent said that their debt had increased by a large amount. When interviewed about their debt repayment habits around 7 percent of those polled were found to be making only the minimum repayment on their debt, which means that they will be paying the debt off for a far longer period and will pay a fortune in interest.

An official involved in the research stated: “The nation has been left reeling with inflation now at 4.5 per cent, the highest levels since 2008, and the crippling effects of soaring living costs. It therefore comes as no surprise that people have seen a rise in the amount they currently owe, compared to 2010. “It is vital credit card borrowers ensure the minimum amount at least is paid off each month, as a missing or late payment could result in the customer forfeiting their promotional rate or incurring fees as well as putting a black mark on their credit file – setting up a direct debit to prevent this is a must.”

Tags: United Kingdom, Credit, rate, personal debt problem, percent, recent survey

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