Brits get deeper and deeper into debt

22 June 2006

0Comments | Comment on this Article

As many as 2.7% of those seeking help with debts owe more than £100'000, according to new research from the CCCS.

This new figure may not seem like alot, but the fact is that it has almost doubled since 2004, up from 1.4%.

At the same time, the number or 18-24 year olds seeking help has increased from 6% of it's clients, in 2001, to 11% in 2005. On average, those seeking help in this age group now owe £15'097.

However, despite the steep increase in the numbers of young people in serious debt, debt levels at the other end of the scale are increasing even faster. Those aged over 60 who had contacted the organisation for help now owe, on average, £33'000

The highest levels of debt are held by those aged 40-59, with an average of almost £40'000 and according to the group, more and more people withing this age group have been contacting them.

The figures were revealed in a yearbook produced by the Foundation for Credit Counselling, which runs the CCCS. They are based on data from 2m phone calls, 280,000 clients and 1m outstanding debts totalling £1.5bn.

It's hoped the yearbook will help to give an understanding of consumer debt.

Last month, charity Citizens Advice said its clients owed so much that it would take more than 75 years for them to repay their borrowing at an affordable rate.

It said problems with credit card and loan debts had doubled during the past eight years and accounted for three-quarters of the 1.25m new debt cases its bureaux dealt with last year.

0Comments | Be the first to comment!