Debt Survey Throws Light on Causes of Debt

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The causes of personal debt in the UK have been revealed by The Debt Counsellors Annual UK Debt Survey 2006.

We recommend that everyone plans for the future by dealing with their personal debt before it gets out of control because of unforeseen circumstances.

The Debt Counsellors Annual UK Debt Survey 2006 has shed light on the causes of personal debt in the United Kingdom.

Personal debt in the UK now stands at around £1.25 trillion and is thought to be growing by £1 million every four minutes.

Debt advice experts The Debt Counsellors have conducted a survey of the people who have contacted them for debt help to gain an insight into the problem. As part of the study the respondents stipulated what they believed to be the main cause of their debt problems.

A drop in income (such as a loss of overtime) took a significant burden of the blame, with 23.2% highlighting this as the major cause.

Job loss was the culprit for some, with 4.7% pointing the finger at redundancy and 2.7% suffering because of being sacked.

Relationship difficulties were to blame for others, with separation the main reason for the debt problems of 8% and divorce pinpointed by a further 3.6%.

Being a single parent was the major reason for 6.8%, health problems were to blame for 6.3%, and 2.3% cited gambling as their downfall.

John Porter, a senior counsellor with The Debt Counsellors, believes the survey shows the devastating effect a change in personal circumstances can have on someone's finances.

Porter said: "One of the conclusions of The Debt Counsellors Annual UK Debt Survey 2006 is that unforeseen or unwanted circumstances can push someone over the brink into serious personal debt.

"We recommend that everyone plans for the future by dealing with their personal debt before it gets out of control because of unforeseen circumstances."

For more personal debt help and advice, visit http://www.debtcounsellors.co.uk

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