However, even the smaller debts are a cause for concern because a change in personal circumstances, such as redundancy, illness or bereavement, an economic downturn or a rise in interest rates could make the problem much worse.
(PRWEB) October 8, 2006
A survey by debt help experts The Debt Counsellors shows that over 70% of UK residents with serious debt problems owe more than £10,000, and more than one in ten of them have debts greater than £50,000.
The Debt Counsellors Annual UK Debt Survey 2006 reveals that 30% of people seeking help for their debts owe between £20,001 and £50,000.
Marginally less (29.9%) owed between £10,001 and £20,000 while 11% have debts of more than £50,000.
Among the less serious cases, 11.1% owe less than £5,000 while 17.9% had debts between £5,000 and £10,000.
The results of the survey are further evidence of the UK's increasing problem of personal debt, with the total calculated to be £1.25 trillion and estimated to be growing by £1 million every four minutes.
John Porter of The Debt Counsellors believes the survey reflects a worrying trend of indebtedness in the UK. He said: "We are seeing many cases where a large amount of money is owed.
"However, even the smaller debts are a cause for concern because a change in personal circumstances, such as redundancy, illness or bereavement, an economic downturn or a rise in interest rates could make the problem much worse."
Despite the seriousness of the situation, Porter insists that there is hope for people with debt problems.
He said: "There are solutions for even the most serious cases of personal debt. For instance, the Individual Voluntary Arrangement, or IVA, can write off a large proportion of a debt while also preventing bankruptcy.
"The first, most important step for someone worried about their level of borrowing is to seek professional debt advice."
For more on UK debt problems and debt solutions, visit http://www.debtcounsellors.co.uk