2 January 2008
Almost ten million UK debtors are finding their financial burden "unmanageable", a new uSwitch report has found.
This credit strain adds up to an enormous total national personal debt of £1.4 trillion - of which £93 billion is being repaid as interest on personal loans, credit cards and mortgages.
As a result, uSwitch is urging those struggling with their finances in the ongoing credit crunch - 23% of the UK adult population, or 9.5 million people - to consolidate their debts.
The process of debt consolidation sees customers streamlining their unsecured debts - including overdraft, card and loan charges - into a single personal loan.
Mike Naylor, Personal Finance Expert at uSwitch, commented: "People have enjoyed easy access to cheap credit for quite some time, but for some, the party really could be over.
"Anyone with multiple debts and a poor credit history could be vulnerable to the impact of the credit crunch and should seriously consider consolidation while the option is still available."
Further findings from uSwitch pointing to a potential debt crisis include the fact that 38% of the 7.2 million applying for a credit card over the past three months have been rejected by providers.
The average personal debt level for each UK household stands at £4,280, research also found.
Sometimes a personal loan is a good choice, perhaps you want to consolidate your credit cards or buy a new car. Whatever your needs, let uSwitch.com help you find one to suit. We're impartial and comprehensive and won't charge you for using our service. Compare personal loans and apply online.
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