One in three Brits has debt demons

Posted 2008-02-20

A third of all Brits are tormented by debt issues fuelled by the credit crunch and the rising cost of living, new research has suggested. Some 27 per cent of UK consumers have increased their borrowing over the past three months, the latest study by MoneyExpert.com has found, even as experts caution that insolvencies and home repossessions are set to soar in 2008. And while Christmas shopping sprees are believed to have been a contributing factor to the debt monkeys on many peoples backs, the financial website insists that the problem likely runs much deeper. "The fact that one in three people who owe money are concerned or very concerned about their ability to manage their debts is worrying," said MoneyExpert.com chief executive Sean Gardner. "The interest rate cuts in December 2007 and this month will help but it remains the case that borrowers have to take action themselves." Another recent study by Friends Provident revealed that two-thirds of Brits are planning to curtail their spending over the coming months in a bid to shield themselves from the predicted economic downturn.

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