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UK debt trends worrying loan and credit card analysts

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According to research from One Advice, there are over two million people in the UK who owe over £10,000 on credit cards, or unsecured loans. Of these borrowers, about half a million owe over £20,000, and a quarter of a million owe £50,000 or more through unsecured loans.

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Business Mlm Opportunity According to National Savings and Investments, 39% of Britons overspend on their debit cards on day-to-day purchases citing the most common reason as, "they feel they are not spending any money". This is a worrying trend when considered alongside the UK credit card trade representative, APACS, reports that nearly two thirds of adults have at least one credit card and that multiple card holding is becoming a growing phenomenon. Over half of all card holders now hold more than one card, with one in ten holding at least five.

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Based Business Home Income Chris Holmes, chief executive of One Advice, said, "It's worrying that so many people owe so much in unsecured debt - and it seems to be rising. With many unsecured borrowing products having high interest rates, many people are entrapped in debt. They are often only paying off the interest accrued every month, as opposed to the capital they have borrowed. Those caught in this situation need to take action - otherwise they will fall further into debt"

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Based Business Home Internet The survey also reports that the 35 to 44 age group was most vulnerable to running up significant levels of debt, making up around a third of those owing more than £10,000. 18 to 24 year olds were not immune however, with one in 20 surveyed already owing over £10,000. With the retraction of financial support for students, and the introduction of top up fees, this age group look set for greater susceptibility in the future. Some of the major banks have started to provide specific student and graduate banking help to reduce the potential impact on those who choose to take on further studies, but more looks to be needed.

  • Revolving (credit cards and store cards)
  • Installment (fixed payment loans, like personal or auto loans)
  • Real Estate (mortgages)
  • Total Debt

Business Homebased Opportunity Due to changes in the law, the number of bankruptcy declarations has seen significant rises, as people see it as the only way out of their debt crisis. Creditaction reports that, "the proportion of bankruptcies among the 18 to 29-age group has more than doubled in the last 4 years."

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Based Business Home Mlm Chris Holmes said, "Those worrying about their finances should seek professional advice as taking out the wrong debt solution could make matters worse. Indeed, bankruptcy can sometimes appear to be the easy way out for people with serious financial problems, but there are difficulties associated with this that can remain for some time. Indeed, bankruptcy stays on your credit file for six years which can affect your ability to get a mortgage and credit, and you will pay higher interest rates. In some cases, it can also have an adverse effect when applying for jobs."

Business New Opportunity Another recent trend, fostered by wide scale advertising, is towards debt consolidation loans in an effort to make loan repayments easier to keep track of. However, Richard Brown, Chief Executive Officer of Moneynet, has warned that people should, "Think carefully before consolidating their debts, this can prove to be a lifesaver for many people. Amalgamating all credit card, store card and personal loan debt into one can make the payments more manageable. However, once this has been done it is often sensible to destroy existing credit cards and avoid the temptation of running up further debt until the loan is repaid".

Business Home Online Disclaimer:

Best Business Home Opportunity All information contained in this article, is for general information purposes only and should not be construed as advice under the Financial Services Act 1986.

Business Investment You are strongly advised to take appropriate professional and legal advice before entering into any binding contracts.

Business Home Making Money Useful resources:

Based Business Free Home Moneynet financial comparisons

Business Internet Online Barclays Bank student and graduate help

Best Business Opportunity Author:

Business Computer Home Michael Hanna

Business Idea Opportunity About Michael

Based Business Home Online Michael is a keen writer, and internet marketer living in Scotland:

Business Federal Opportunity Contact details:

Based Business Home Legitimate E-mail: samqam@googlemail.com

Business Home Mlm Opportunity Phone: 0131 561 2251

Business Home Idea Internet Michael's Website: Belfast Airport Taxis

Based Business From Home Author:
Michael Hanna

Business Make Money Online About Michael

Base Business Home Opportunity Michael is a keen writer, and internet marketer living in Scotland:

Business Magazine Opportunity Contact details:

Business Make Money E-mail: samqam@googlemail.com
Phone: 0131 561 2251

Business Opportunity Weblog Michael's Website: Belfast

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