19 April 2006
Around two million people in the UK owe £10,000 on credit cards, loans and overdrafts, according to new research.
The study from debt advice firm One Advice also found that nearly one in four of these people had unsecured debt of more than £20,000.
People in the 35 to 44 age bracket were those most likely to find themselves in debt, with around 650,000 within this cohort owing more than £10,000.
"With many unsecured borrowing products having high interest rates, many people are entrapped in debt, often only paying off the interest accrued every month as opposed to the capital they have borrowed," said Chris Holmes, chief executive of One Advice.
"Those caught in this situation need to take action otherwise it is likely that they will fall further into debt."
Personal loans were the most popular form of this debt, with almost one million Brits owing more than £10,000 through such a loan.
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