Top > Business > 2005 > December > 2005-12-29

UK Takes a Debt Survey

Debt is a world wide problem, and people are constantly finding themselves stuck with financial problems. Many countries are currently attempting to analyzing what percentage and portion of their population is suffering from debt. This is all in the hope of assisting their citizens to get out of the financial rut they find themselves in. Debt Counselors Annual UK Debt Survey 2006 offers a revealing insight into the nature and causes of debt in the UK. By polling individuals who approached them for advice, the Debt Counselors discovered that approximately 46% of cases involved debts greater than ?20,000, and around 13% owed more than ?50,000.

A drop in income caused by a dramatic change in circumstances such as redundancy, divorce, separation, illness and bereavement is the major cause of debt for the majority of cases, but 40% attribute their problems to poor financial management and overspending. Typically, the UK resident with debt problems is a young person who owes money through credit cards, store cards and personal loans and is struggling to get on the property ladder. With the sexes evenly represented, 60% of those struggling with debt are under 36.

Credit card debt contributes to 91% of cases, 84% have debts through personal loans and 47% have store card arrears, while only 40% owe money through a mortgage. John Porter, a senior counselor with the Debt Counselors, said that one of the conclusions of the survey is the necessity of good financial advice. The fact that many of these debt problems have been caused by bad budgeting, overspending and general poor judgment is evidence that too many people are waiting too long to take advantage of professional advice and debt counseling. Fortunately, there is always help at hand and solutions for even the most serious debt problems. There are plenty of options even for those who suffer a drop in income through no fault of their own. But the sooner people seek help, the better.