Mortgages ‘to blame’ for huge debt mountain

Realising that mortgages account for £1,000 billion of this debt mountain, the charity has expressed concern that people are taking on home loans that are too much for them, reports Associated Newspapers.

Including mortgages, the average amount owed by every adult in the UK is £27,180.

Credit Action’s Keith Tondeur said: “Property looks like a very attractive investment in the UK, but not if the investment is more than you can realistically afford.”

Excluding mortgages, every adult in Britain has, on average, debts of £4,511 each. This means that the UK public owes £278 billion in unsecured personal loans, overdrafts, credit cards and other finance deals.

Personal finance firm Equifax said that it is crucial that UK borrowers start thinking about the future when it comes to money if they are to avoid bankruptcy.

“Now is definitely the best time for individuals to sit down and plan their financial future, to ensure they are prepared for any unexpected financial pressures,” said a spokesman.