Debt ‘growing’ in the UK

A new survey has found the average sum of debt owed by British consumers has risen.

The average UK resident now has debts of £9,090 – an eight per cent rise since April last year, according to Bankruptcy Help and IVA.

According to the study, men are worse affected by potential debt management problems than women, with average debts of £9,500 compared to £8,670. Men’s debt has risen 13 per cent in the last three months, the research found.

This has resulted in more people looking at options such as Individual Voluntary Arrangements (IVAs).

Andy Davie from the IVA website said the credit crunch has meant people with debt have fewer choices.

“The normal boulevard of remortgaging to pay off unsecured debts has been severely narrowed and the reduction of mortgage products available is resulting in many to consider formal insolvency,” he said.

In related news, the Citizens Advice Bureau in Bury St Edmonds is the latest in a line of bureaux commenting on a rise in bankruptcy declarations, the Bury Free Press reported.

By Morwenna Kearns