'Price of debt' has increased

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'Price of debt' has increased

Mon 14th Sep 2009

People are struggling more when they get into financial difficulty because the price of debt has gone up, according to an industry expert.

Chris Tapp, director of Credit Action, claimed that more and more people are beginning to struggle with their debt because of a lack of available credit and often a drop in income.

He stated that people were still paying off debts that they had built up before 2007, but that now they are much harder to clear because they have been made redundant or given less work.

"Those type of employment issues are a real source of debt problems because they impact on people's income so heavily," he added.

Mr Tapp also pointed out that the drop in wealth levels that have been seen recently comes from the fall in the value of the stock market, but that this does not necessarily have a direct impact on individuals' personal debt.

Statistics released by Credit Action indicate that the level of personal debt in the UK stood at £1,458 billion in total at the end of June.

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