Personal debt ‘will continue to escalate’

Total personal debt is set to continue its steady growth over the next 12 months, it has been claimed.

Head of consumer finance at lovemoney.com Ed Bowsher made his comments in reaction to the latest UK debt statistics released by Credit Action.

The figures showed a slight increase in the amount individuals across the country owe, with the total sum amounting to £1,460 billion – more than what the nation produces in a year.

Mr Bowsher remarked: “Although many people will be keen to reduce their debt, rising unemployment will force some people to borrow more – often at exorbitant rates.”

He added the £1,460 billion figure is “shockingly high” and stated Brits are worried about taking on more debt because of the uncertainty caused by the financial crisis.

The Consumer Credit Counselling Service recently revealed the number of people turning to online help regarding money concerns has increased by around two-thirds since 2008.

By Joe Shervin