The type of debt that is causing people to need a debt solution or debt advice is changing, according to Credit Action.
Chris Tapp, deputy director of the national money education charity, has said that mortgage payments have replaced credit cards, loans and other unsecured lending as the form of debt that people struggle with.
“We’ve seen such growth in house prices that people have been forced to borrow very large amounts of money if they want to get onto the housing market and that’s led to people borrowing in a way that’s left them very little breathing space in terms of their monthly budget,” Mr Tapp said.
He also offered that it was not necessarily a case of irresponsible lending or borrowing that has led to problems of indebtedness and the need for debt advice, but rather that “the financial system in general” is experiencing problems.
According to Credit Action figures, the level of personal debt in Britain has rises by £1 million every four minutes, with consumers borrowing an additional £322 million each day.