Survey highlights consumer credit worries

More than a quarter of consumers in the UK are worried that they will need debt help in the future, a survey has found.

Research by PricewaterhouseCoopers (PwC) has revealed that despite many people not feeling adversely affected by the economic downturn, 16 per cent are already struggling with debt.

The Precious Plastic report into the consumer credit market also showed that borrowing in the UK has doubled since 2000, with the average adult now owing £40,000.

Unsecured loans have increased by six per cent each year, while more than 100 adults enter into bankruptcy, an Individual Voluntary Arrangement or commence a debt management plan every working hour.

Head of consumer finance at PwC Richard Thompson remarked: “Some people are still prepared to borrow despite the tough market conditions, rising unemployment, a depleted housing market and the increasing sense that they will be unable to repay debt in the future.”

Last week the government urged credit card firms to lower interest rates in order to provide relief to consumers.

By Tom Musk