Personal Loan Store Logo
UK Loan Comparisons

Number of people in serious debt rockets

According to a recent report the number of people that are in serious debt has risen by around 30% in the last year alone. Debt levels in the UK have been at the centre of concern for some years, as the debt mountain continues to rise and bad debt levels smash through unprecedented barriers.

According to the research the steep rise in the number of people facing serious debt problems is largely down to the five interest rate rises that have taken place over the past year, each of 0.25%.

The reports indicates that over eight million people in the UK have unsecured debts of around £10,000 or more. This includes loans, credit cards, store cards, and overdrafts. The research was carried out by Thomas Charles, the debt consultancy, and highlights the debt crisis that is facing the UK in light of the interest rate rises and rising monthly repayments that households are having to cope with. There has also been an increase in the number of people that are struggling to repay their debts.

There has been a 9% increase in the number of people that are struggling to keep up with repayment compared to last year. Around 25% of those with debts of £10,000 or more have stated that they struggle to keep up with repayments. Although the survey used over two thousand adults as respondents, it was found that those most likely to be struggling with repayments were consumers in the London area.

One official from Thomas Charles stated: "These high levels of unsecured debt are clearly linked to the rise in interest rates over the last 12 months. A record rise in house prices – especially in London and the south-east – has led to a growing discrepancy between mortgage payments and salaries. The high pressure to maintain social and commercial status, particularly experienced by women, often goes hand in hand with high expenditure on the high street."

Tom Smith
13th August 2007

Recent Mortgage News:

  • Leading mortgage lender announces mortgage exit fees will be scrapped [13.08.07]
    A number of major lenders in the UK have recently announced that they have scrapped mortgage exit fees, which are charged to borrowers when they repay a mortgage or when they close a mortgage account to switch to another lender.
  • Halifax’s 25 Year Fixe Rate Mortgage Offering [09.08.07]
    Halifax (HBOS) has joined those offering 25-year fixed rate mortgages with a rate of 6.39%. The deal has an arrangement fee of £599 and an early repayment charge of 3% over the first ten years.
  • No change to interest rates this month [07.08.07]
    The Bank of England has announced that there will be no rise in interest rates this month following the Monetary Policy Committee meeting. Interest rates have gone up five times in the past year by 0.25% each time taking the rate from 4.5% last August to 5.75% in July.
  • HIPs: Doubts Still Remain [06.08.07]
    Home Information Packs (HIPs) became law on 1 August, but concerns remain that house sales might be delayed because there is still a shortage of home inspectors in some areas. There are also niggling doubts about a number of loopholes that exist in the system that will allow some avoidance of the packs.
  • Property Market Round-Up [02.08.07]
    Property prices have had a good run for their money - they have been rising steadily since 1997 and have outstripped all other potential investments.
  • Next three months to be turbulent for fixed rate customers [01.08.07]
    The next three months are set to be very turbulent ones for hundreds of thousands of UK consumers that signed up to fixed rate deals on their mortgages two or three years ago. In the past year interest rates have rocketed from 4.5% to 5.75%, with five rate rises of 0.25% each.


Early Redemption Penalties - Loan Extras - Debt Consolidation Bad Credit - Choosing a Personal Loan - Loan Penalties - Money Saving Loan Tips - Loan Reviews
Site Map - About Us