Personal Loans & Credit Cards Contributing To Money Worries

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Wed, 12 Sep 2007

The number of British consumers facing financial worries is steadily increasing, new research has found.

The Citizens Advice Bureau (CAB) has revealed that a number of people have visited their local CAB for advice about money problems during the last twelve months.

Searching for debt advice and help with money-related problems is now the main reason for UK consumers seeking help from Citizens Advice, as the number of enquiries increased by 20 per cent to 1.7 million in 2006-07.

The national charity reported that personal loan arrears and credit card debt accounted for 40 per cent of all cases brought to their attention, and added that around 6,600 individual cases are brought forward each working day.

In addition, the CAB found that problems with overdrafts and unsecured personal loans rose by 18 per cent, while bankruptcy enquiries increased by 50 per cent.

Commenting on the figures, David Harker, chief executive of Citizens Advice, said: "These figures are worrying evidence that while many have enjoyed the benefits of the credit boom, a large and growing number of people continues to pay the price, becoming overwhelmed by serious debt that can have a devastating impact on their lives."

"Even more worrying are the signs that people are struggling not only to repay credit, but also to afford day-to-day essentials," he added.

The extent of the UK public’s financial difficulties was highlighted recently, as it was reported that personal debt in the UK had reached a record high total of £1,355 billion at the end of July 2007.

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