Significant increase in debt accumulation

Tue, 03 Jan 2012

The number of people accumulating debt in the UK increased considerably in 2011, new research has shown.

Carried out by The Co-operative Bank, the study revealed a 27 per cent rise in such levels, with the average British adult building up more than £749 of arrears in this time.

Despite this, 27 per cent of those who fell into such financial difficulty last year claimed they expect to repay what they owe in the next 12 months, while 26 per cent hope to pay back half or more.

To help individuals cope with mounting arrears, the bank has announced it is to place interest charges on hold for customers with an agreed overdraft .

Robin Taylor, head of banking at the organisation - which is part of The Co-operative Group - stated: "We want to offer a helping hand to those customers who may be struggling financially and give some additional support to those whose finances may be stretched after the festive period."

The industry figure added this move should help to bring even more competition to the high street by providing consumers with decent alternatives to the largest financial institutes.
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