Close to one in four of the UK’s adult population has debts that are considered to be unmanageable, according to figures recently compiled on behalf of uSwitch.com.
The financial comparison firm claims that there are now almost ten million people around the country who are finding their debt management issues overwhelming.
Personal loan and credit card debt held in the UK is worth close to £222 billion and around £93 billion is paid in interest on personal debts each year around the country, uSwitch.com reports.
Mike Naylor, personal finance expert at uSwitch.com, said: “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.
“The base rate reduction is a step in the right direction, but it could be too little too late for people in real financial difficulties.”
Figures from the Credit Action charity suggest that the UK’s overall debt management burden increases by close to £1 million every four minutes.