Millions Of Brits Struggling With Debt

Thu, 14 Jul 2011

More than six million households in the UK are struggling financially, according to new research by the Consumer Credit Counselling Service (CCCS).

The debt charity’s latest Debt and Household Incomes report revealed that 3.2 million are either three months behind with debt payments or subject to some form of debt action such as insolvency .

It also showed that a further three million households are "at risk" of financial difficulty because they are struggling to "make ends meet" and are likely to be driven further into debt by rises in household bills.

According to the CCCS, the average client who earns up to £13,500 per year has unsecured debts that exceed their annual income by a fifth, while those earning between £25,000 and £50,000 have average unsecured debts totalling 95 per cent of their yearly income.

Unsurprisingly, those on benefits have the highest debt-to-income ratio, owing on average 124 per cent of their annual income in unsecured loans and credit card debt .

CCCS chairman Lord Stevenson of Balmacara said: "Unfortunately, these figures confirm our fears - that troubled times lie ahead for many people in the UK. What this report shows is that the pain is going to spread wider and affect many more people than many commentators have previously assumed."

He added: "CCCS was contacted by almost 418,000 people last year, and our data reveals the stark realities faced by many decent, ordinary people who struggle to make ends meet in these difficult economic times."

"It is important that the complexities of their vulnerability are understood and addressed by government as well as the financial and charitable sectors."
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