Debt is growing, says Moneysupermarket

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Debt is growing, says Moneysupermarket

Fri 16th Feb 2007

It appears that for the majority, debt is simply a way of life, as new research points to the fact that 8.5 million debt consolidators accrue more.

Being in the red is a fact that will last a lifetime, according to 57 per cent of consolidators quizzed by price comparison website Moneysupermarket.

In addition, it was discovered that although 66 per cent of people in the UK are currently in the process of consolidating debt, just over a quarter (26 per cent) have expressed that they can effectively manage their debt.

Tim Moss, head of loans and debt at Moneysupermarket, said: "Debt has certainly become the common curse of modern times. Whereas 40 years ago being in the red was considered a last resort, it seems many of today's Brits are much more accustomed to taking on debt - although actually being able to control it is another thing."

The most common causes of mounting up increased debts were found to be credit cards (28 per cent), heading into an overdraft (12 per cent) and thirdly, five per cent did so by taking out a new loan.

Further Moneysupermarket research has found that sub-six per cent personal loan rates are becoming a thing of the past with many providers.

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