The fact that many of these debt problems have been caused by bad budgeting, overspending and general poor judgement is evidence that too many people are waiting too long to take advantage of professional advice and debt counselling
(PRWEB) December 28, 2005
The Debt Help Site Annual UK Debt Survey 2006 offers a revealing insight into the nature and causes of debt in the UK.
By polling individuals who approached them for advice, the Debt Help Site discovered that almost half (46%) of cases involved debts greater than £20,000, and many (13%) owed more than £50,000.
A drop in income caused by a dramatic change in circumstances such as redundancy, divorce, separation, illness and bereavement is the major cause of debt for the majority of cases, but 40% attribute their problems to poor financial management and overspending.
Typically, the UK resident with debt problems is a young person who owes money through credit cards, store cards and personal loans and is struggling to get on the property ladder.
Credit card debt contributes to 91% of cases, 84% have debts through personal loans and 47% have store card arrears, while only 40% owe money through a mortgage.
With the sexes evenly represented, 60% of those struggling with debt are under 36.
Terry Galvin, editor of the Debt Help Site, said that one of the conclusions of the survey is the necessity of good financial advice.
"The fact that many of these debt problems have been caused by bad budgeting, overspending and general poor judgement is evidence that too many people are waiting too long to take advantage of professional advice and debt counselling," said Galvin.
"The level of debt is a real concern and shows that people tend to delay seeking advice until their debts are serious and out of their control."
Galvin added: "Fortunately, there is always help at hand and solutions for even the most serious debt problems. There are plenty of options even for those who suffer a drop in income through no fault of their own, because of redundancy or divorce and so on. But the sooner people seek help, the better."
For more information, visit http://www.debthelpsite.net