Debt grows £1 million every four mins

www.moneynews.co.uk > Debt > Debt grows £1 million every four mins

Debt grows £1 million every four mins

Thu 18th Jan 2007

Personal debt in the UK is growing by £1 million every four minutes, figures released by money education charity Credit Action show.

The collective level of debt stands at almost £1.3 trillion, according to Credit Action's debt statistics, and one of the key contributing factors cited by experts is the high cost of mortgages, compounded by the recent base rate hike.

Mortgages make up the majority of this cumulative debt with around £1 trillion going on this product. And these secured loans rose again as the base rate increased to 5.25 per cent, the third rise in six months.

Spokesperson for money education charity Credit Action Keith Tondeur said: "Property looks like a very attractive investment in the UK, but not if the investment is more than you can realistically afford."

Excluding mortgages, the average person in the UK has a personal debt of £4,511, including lending such as overdrafts, personal loans and credit card loans.

According to price comparison website Which?, the Office of Fair Trading (OFT) checked newspaper adverts and websites last November to see if they were misleading people into accruing more debt.

The OFT has consequently issued a warning to 17 companies which have released adverts that could potentially mislead customers, regarding individual voluntary arrangements.

Related News : Debt
	Lessons in financial responsibility 'are important for young people'
	Payday loans 'can lead to significant financial difficulties'
	Brits 'becoming more focused on financial wellbeing'
	Serious debt issues emerging, says expert
	More women 'are facing debt problems'
	Debts 'down slightly in February'
	Brits 'should focus on reducing borrowings'
	Paying down debt is 'better value than saving'
	January a 'gloomy month' for indebted Brits
	Most expensive debts 'must be paid first'