Debtors working until mid-week just to pay debts - Debt - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Debtors working until mid-week just to pay debts

Debtors working until mid-week just to pay debts

Category: Debt

Updated: 06/06/2011
First Published: 06/06/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

People struggling to pay off debts are working until late on Wednesday each week just to earn enough to repay their unsecured borrowings.

The Consumer Credit Counselling Service (CCCS) says that the average person that seeks debt advice has to work until 4pm on Wednesday each week just to meet their debt responsibilities.

They then have the remainder of the working week to earn what they need to pay for their basic living costs including their mortgage.

The new figures from the charity, which was contacted by 418,000 people last year, highlight the pressure those who are trying to meet their living costs and tackle debts at the same time are under.

The average person contacting CCCS in 2010 owed a total of £22,476 on credit cards, personal loans, overdrafts and other types of unsecured debt - and faced a monthly bill of £675.52 just to meet their repayments.

This figure made up a worrying 58% of the average CCCS client's earnings of £1,173.23 a month after tax.

"With rising prices continuing to push up the cost of living, household budgets are under increasing pressure - and these figures show how difficult it can be to escape from debt once it builds up," Delroy Corinaldi, external affairs director at CCCS, said.

"Our advice to anyone struggling to cope with their repayments is to seek free advice as early as possible."

Debt advice specialists such as the CCCS and Debt Free Direct will offer free and impartial advice to those with debt problems.

Find the Best Debt Solution for you - Compare Debt Solutions.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Millions are borrowing to buy essentials

Many of us use credit from time to time, and when used wisely, it can be a valuable way to help make the most of your money. However, over-reliance on credit can be dangerous, particularly when people are forced to borrow to buy essentials.

Millennials losing sleep over debt

Money worries can keep people up at any age, but new research has found that a staggering one in four adults under 34 have lost sleep over financial troubles. Many are feeling pressure not just from their bank account, but also their loved ones.

Would you go into debt to bag a bargain?

It can be hard to resist the lure of a bargain, particularly at this time of year. However, while it should be a way to cut costs, it seems that some get carried away, and end up spending far more than they should – and get into debt as a result.