Debt management issues highlight need for accessible financial services
Debt management issues highlight need for accessible financial services
Wednesday 3rd March 2010
New figures from Credit Action reveal that total personal debt in the UK increased by 0.8 per cent over the last 12 months, bringing the figure to £1,463 billion. The average UK household debt including mortgages has now reached £58,040.
What is more, the typical amount owed by every adult is now £30,306 including mortgages, which equates to 129 per cent of average earnings.
Paul A Jones, senior researcher at Liverpool John Moores University, said the challenge of providing "affordable, accessible and appropriate financial services" is now greater than ever.
This is despite recent developments such as the expansion of debt advice and access to affordable credit, said Mr Jones, adding that it is due to a change in context.
"We have now had the recession and the financial crisis and many people are facing increasing financial difficulty," he said.
"Access to available credit is ... becoming more difficult - particularly for those on the lowest incomes. We have seen rises in mortgage arrears, rapid expansions in demand for debt advice, personal insolvencies are rising and so on."
According to the latest Lending to Individuals Report from the Bank of England, total net lending to individual's rose by £2 billion in January, and the 12 month growth rate increased to 0.8 per cent.
Consumer credit went up by £500 million, above the previous six month average of a net repayment of £200 million, states the report.
News article brought to you by Debt1 – UK Debt Management Specialists
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