Bills and secured loans 'contributing to mounting - Loans - News - Moneyfacts


Bills and secured loans 'contributing to mounting

Bills and secured loans 'contributing to mounting

Category: Loans

Updated: 27/08/2010
First Published: 26/02/2009

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 It is now over 6 months old so the content may be out of date.

Consumers in Britain have little chance of paying off the money they owe within their lifetimes, it has been suggested.

According to research by Citizens Advice, the average person who contacts the service for advice owes almost £17,000 - with bills and secured loans a major factor.

And with over 7,000 new debt problems being presented every day, the charity estimated that it would take each one 93 years to pay off the money at an affordable rate.

"These findings make sobering reading, especially as they are based on data collected just before the worst of the credit crunch began to bite," said chief executive of Citizens Advice David Harker.

Among the findings was the fact that 45 per cent of homeowners are in arrears on mortgages and secured loans, while one in ten owe money on at least ten sources of credit, such as unsecured loans and credit cards.

Compare the best loans on the market using our Loans Best Buy charts.

Use our loan calculator to help you search and compare the cheapest loans to save you money.

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 Any products featured may be withdrawn by their provider or changed at any time.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

Get a record low rate loan - if you qualify

Competition in the personal loans market is as hot as ever, so much so that one loan provider has slashed rates to the lowest on record – but only to those who fit the bill. The shopping bill, that is…

Competition returns to loans, but stalls in cards

Our recent figures reveal a mixed picture in terms of unsecured lending, as while competition appears to have returned to the loans market, it’s notably slowed in the credit card sector.

How to improve your credit score

Are you thinking about applying for credit? If so, you need to make sure your credit score is in order.