Debt to double for Brits in 2008

Posted 2008-04-15

About one million people in the UK have "problem" debt, according to a new report, and this is set to increase over the year.

The study, entitled UK Problem Debt and conducted by debt management solutions firm TDX Group, has revealed that the number of Brits struggling with their debts will double during 2008.

The amount of those with problem debt was totaled at £25 billion, with individuals carrying a burden of £25,000 each. Around 60 per cent of this was owed on credit cards while the remainder was mainly through personal loans.

Painting a gloomy outlook for the year ahead, a spokesman commented: "There will be fewer refinancing solutions such as re-mortgaging and homeowner loans available, because banks and building societies have tightened up their lending criteria.

"This could mean there could be a doubling in the number of people taking out repayment plans such as individual voluntary arrangements and debt management plans."

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