Nearly a third more struggling with debt

4 February 2010

The number of borrowers finding their debts difficult to manage has risen by almost one third during the recession, and according to a report by the National Audit Office, some debt advice services are so busy they are having to turn people away, express.co.uk reports.

The total amount of debt taken on by individuals (including mortgages, credit cards, unsecured loans, etc.) adds up to an average of £56,000 per household - `outstripping` the nation`s GDP (Gross Domestic Product - a measure of economic activity).

In total, personal debt represents 160% of annual household pre-tax income - up from 100% in 2000.

In 2008, the Bank of England found that one in 10 people had debt problems, and although research has found that people are trying to reduce their debt, borrowing is expected to rise in 2010.

A debt expert for Think Money commented: "We would advise anyone who is struggling with their debts to speak to a professional debt adviser as soon as they can.

"The sooner someone acts, the more options they may have available to become debt free."

Tags: debt, struggling with debt

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