Is the UK debt mountain out of control?

Crosshills, West Yorkshire -- (SBWire) -- 02/07/2010 -- It looks like the time lag between the beginning of recession in the UK and Britons losing control of their finances may have lapsed.

A record 150,000 Brits could be facing insolvency, 15 per cent more than last year, as debt levels climb to around £56,000 for every UK household. Personal debt, excluding mortgages, stands at around £24,000 and on average people are trying to deal with 11 different creditors.

These debts are made up of a combination of mortgages, credit cards and personal loans; with the per household debt being 60% more than the average pre-tax income.

Not surprisingly there has been a 30 per cent increase in the number of people asking for debt help and the National Audit Office reports that some agencies are turning away new clients.
Craig Gedey, Marketing Manager at Debt Advisory Line said: ‘Seeking professional help as quickly as possible is key for these people today.”

“If you are trying to deal with 11 different creditors adding more to that list by further borrowing is not the solution.”

“At the Debt Advisory Line we give professional and impartial advice. We provide free initial advice from qualified debt advisors so that people are best informed to make their own choice about which debt solution is right for them.”

The Governments ‘Debt Strategy’ from April 2004 until March 2011 is to help 261,000 people at a cost of £330 each. At the moment 270,000 people have been advised at a cost of £311 each. However looking at the current UK debt figures it is becoming obvious that more needs to be done.