Personal debt has increased by a “whopping” £757 million over the past year, new research has found.
The figures, compiled by Unbiased.co.uk, revealed that consumer borrowing rose to £5.9 billion in the second quarter of 2008, showing a marked increase from the same period in 2007.
For every pound saved by consumers in the UK during this time, another 15 pence was borrowed, the study stated.
Chief executive David Elms urged borrowers to implement a debt management plan, saying: “With the credit crunch firmly gripping financial markets, it is now more important than ever for consumers to take control of their finances.”
Consumer’s savings have dropped by £4 billion since 2007, the report added.
Meanwhile, insurance company esure has warned the public about the perils of stashing cash at home as it emerged that sales of domestic safes have surged since the banking crisis unfolded.
Homeowners could be left under-insured and exposed to debt by keeping money at home, the organisation claimed.
By Jamie Price