- 28
- Sep
According to research by debt consultancy Thomas Charles, more than eight million adults are now in serious debt. This is a thirty percent increases over the past year, largely due to the rising interest rates. The 8.2 million people who are in serious debt account for 18 percent of the adult population. The average adult who is in serious debt has £10,000 or more of unsecured debt. Unsecured debt accounts for credit cards, overdrafts, loans and store cards. As many homeowners struggle to make ends meet with rising mortgage payments, the cost of unsecured debts seems to be rising.
The number of people who are struggling to meet debt repayments are has also increased. Around 25% of those with serious debt claim that they frequently have problems meeting their debt repayments – a nine percent increase from last year. A poll that was conducted shows that people who live in London are those that are most likely to be struggling with debt. Around forty percent people living in London have debt of 10,000 pounds or more with regular problems repaying their debt. In the south of England twenty percent suffer from serious debt and repayment problems while just eighteen percent in the Midlands and Wales suffer from the same dilemma. More and more, experts are advising consumers to watch their spending habits, to prepare a budget and pay off their credit cards, personal loans and other debts as quickly as possible. With the effect of the recent rate rises waiting to sink in, many homeowners are advised to start budgeting and cutting down on unnecessary expenses. For those who are in serious debt, it is advisable that they seek financial assistance.
