Recent research has shown that debt laden Britons will have to work for an average of 70 days this year just to earn the money they need to pay interest on their credit card and loan debt, more than a month later this year than it had been in 2007.
Ryan Howsam, debt.org’s founder says: “All the money the average person earns during the first 70 days of the year goes towards servicing debt, without even reducing the amount they owe. This was driven by a 10% increase in personal debt levels during the past year, while the interest people are charged on their borrowings rose by 6%. The amount people owed on personal loans jumped to £9.8 billion this year, compared with £2.6 billion in 2007. At the same time average interest rates on personal loans rose by 0.5%, leaving Britons collectively facing an interest bill or nearly £1.5 billion.”
The news comes at a time when it was announced that the number of rejected mortgage applications surged by almost 60 percent in the six months to end-October, as five increases in the base rate since August 2006 started to bite and borrowers came up against tougher lending rules.
Mr Howsam adds: “The euphoric spending culture over recent years is unprecedented, with banks, and even governments encouraging consumers to take advantage of economic stability and low interest rates. But few could have predicted how quickly the tide would turn, leaving many Britons left high and dry with mounting debt and confusion as to how to tackle the problem.”
debts.org provides debt advice and solutions in all aspects of personal finance, from bank accounts and charges, credit cards, bankruptcy, IVA, as well as, loans and mortgages. So if you
are concerned about your debt or would simply like to get the most from your money, then debts.org’s impartial advice can help as an information tool, dedicated to you the consumer.
Visit www.debts.org today.
Editor’s Note: Debts.org is represented by online advertising consultancy, Top Position. Please direct all press queries to Billy Howe. Email: billy@topposition.co.uk or call: 0800 094 9001.
