Debt ‘set to rise’ as credit crunch hits
Borrowing is predicted to soar as a result of the economic downturn, according to a new report.
Research from the Fair Investment Company has shown that the average person owes £5,886 through store credit, personal loans and credit card debt.
This is a 30 per cent increase when compared to figures released by charity Credit Action a year ago.
Men owe 33 per cent more than women on average, as the typical female has a personal debt of £5,404 compared to males who have £7,172.
Spokesman Matt Edwards remarked: “As people contend with rising fuel and food costs, it is no surprise that they have to borrow more. However, the downside of this will be the interest rates that could soon eat into people’s pockets.”
A recent survey from Saga revealed that 24 per cent of under-50s are planning to cut back on paying off debts in order to afford energy bills.
By Jamie Price