Brits 'need to examine their debts'

By Sarah Engle, Wed 29 Jul 2009 - Published in Loans

Some Britons are still not recognising the importance of reducing their debt, it has been suggested.

Research carried out by moneysupermarket.com showed that 40 per cent of people are choosing to reduce their non-mortgage debt rather than add to it.

However, the study found that 54 per cent of the population still has an average non-mortgage debt of Ł6,956.

In addition, the survey discovered that 27 per cent have increased their debt by a significant amount over the past year, with 14 per cent of these expecting to owe money for the rest of their lives.

Tim Moss, head of loans and debt at moneysupermarket.com, said: "For those who have seen significant increases in their indebtedness over the last year, I would strongly encourage them to go through their household budget ruthlessly, line by line, and identify where outgoings can be cut."

He also recommended they contact their lenders and organisations such as National Debtline or the Citizens Advice Bureau to look for possible solutions to their money problems.

Earlier this month, Tony Dolphin, senior economist at the Institute for Public Policy Research, said that increasing financial education for customers is not enough to prevent future economic crises.

News Categories

News Archive

News: Brits 'need to examine their debts'