One in five Brits struggle to manage debts

By Sarah Engle, Wed 11 Jan 2012 - Published in Credit Cards

One in five consumers in Britain have admitted to struggling to manage their debts, according to new research by the Money Advice Trust.

In was recently found that after the costly Christmas period many people were turning to payday loans to cover their outgoings from the festivities. John Lamidey, chief executive of the Consumer Finance Association, added that using short-term loans to pay for mortgages was "simply impossible".

Now, officials at the trust have found that the number of people getting help from free debt advice agencies increased in 2011 to 1.54 million people, compared to 1.4 million in 2010.

The figures also revealed that an estimated ten million people (20 per cent of the adult population) find themselves in a "constant struggle" to manage debts.

Joanna Elson OBE, chief executive of the Money Advice Trust, said: "2011 was a tough financial year for many families across the UK; unfortunately more people are likely to struggle in 2012. With unemployment rising and wage growth relatively flat it's going to take a greater proportion of household income to heat your home, put food on your table and petrol in your car."

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