17 May 2006
Personal debt has risen by 150% on the British Channel island of Guernsey over the past year, according to a new report.
The annual study by the island's Citizens Advice Bureau found that debt under management had grown from £2 million in 2004 to almost £5 million in 2005, according to the BBC.
Mortgage loan costs were targeted as the principle cause of the increase, but unsecured loans and credit cards were also seen as contributing.
The bureau's manager Kate Raleigh told the BBC: "I think the consequences of borrowing aren't clear enough, and it's very tempting to think 'let's borrow some money and have some free money for something else as well'.
"It all sounds good, but the point is that you are going to have to pay it all back, and people have to realise that if you can't pay it back the penalties can be enormous."
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