Borrowers urged not to overextend themselves

Joel Lewis, spokesperson for CCCS, said that if commitments for personal loans, credit cards, store cards come to more than a fifth of a person’s income then they are probably in need of professional help.

He advised those who are overextended to “seekadvice on handling your debts before doing anything else”.

His comments follow a survey by Yorkshire Bank that show the majority of first-time buyers are considering taking out a home loan that is five times their income, prompting debt groups to worry about the level of debt people are taking on and the prospect of growing number of bankruptcies.

Mr Joel said that although most people understand the implications of taking out a mortgage, first-time buyers aged over 30 must consider the implications of borrowing over the longer term.