8 December 2005
Three million people owe more than £10,000 on personal loans, credit cards and other forms of money lending, according to new research from debt solutions firm One Advice.
Furthermore, 2.5 million of these people have unsecured debts of over £50,000 – and one in ten of those with five-figure debts possess serious worries about whether they are going to be able to repay them in full.
London had the highest proportion of people with such financial burdens, with nine per cent admitting to holding five-figure debts, while the Midlands – with a figure of only four per cent – came out the most respectably.
Chris Holmes, One Advice's chief executive, warned that people must be careful what deal they choose, saying: "There are an alarming number of people with serious debts which they find difficult to repay. The pressure to spend at Christmas is almost certain to add to the UK's debt burden.
"Debt advisors are already braced for a surge in pleas for help next month when people realise the scale of their problems after Christmas. Those worrying about their finances should seek professional advice, as taking out the wrong debt solution could make matters worse."
Although 16 per cent of those questioned said they would be taking action to address their problems, seven per cent claimed that they were considering going bankrupt.
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