Latest Debt News
Credit crunch doubles number of debtors
16/04/2008 10:48:00
The number of consumers expected to fall into debt as a result of the credit crunch is set to double during 2008, new research has shown.
Findings from debt management group TDX show that UK consumers have up to £25 billion in unsecured debt with each owing an average of £25,000.
Up to 60 per cent of this is owed on credit cards while the other 40 per cent is mainly owed on loans, revealed the UK Problem Debt - consumer crisis or efficient market? report.
Mark Onyett, chief executive of TDX Group said that there could be a doubling in the number of people taking out repayment plans such as individual voluntary arrangements (IVAs) and debt management plans as alternatives to bankruptcy
However, up to 45 per cent of debtors fail to complete these schemes with a third of this figure dropping out within a year, he stated.
"These issues need to be addressed urgently, as we expect strong growth for the debt management market during 2008," concluded Mr Onyett.
At the end of February, UK personal debt stood at £1,421, a rise of 8.9 per cent over the previous year, reported Credit Action.
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