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Consumers failing to take responsibility for debt

01 November 2007

75% of consumers believe that they’re not responsible for overindebtedness, according to a survey by credit reference agency Callcredit. ¹

With recent Bank of England figures showing that consumer debt has risen by £1.35bn in the last month alone, the findings are a worrying warning to consumers who may be tipping into over-indebtedness.

Owen Roberts, Head of Callcredit Consumer comments: “It is important to remember that responsible lending goes hand in hand with responsible borrowing.  Consumers need to look closely at their own borrowing habits and take control of their finances.

“Instead of worrying about who is to blame, as individuals we need take responsibility for our own financial wellbeing. My advice to people who feel that they are struggling with repayment commitments is to assess their debts by checking their credit report; they should then contact their lenders to discuss a suitable repayment plan.”

Consumers in the East of England are the most likely to take responsibility for affordable borrowing with 22pc saying that customers’ should be held accountable for determining the affordability of their borrowing.  This figure falls dramatically to just one in ten consumers in London.

Callcredit’s Debt Control Tips

1. Don’t bury your head in the sand – take control of your financial situation by checking your credit report for a full picture of your financial situation
2. Contact your lenders or a consumer credit organisation such as the Consumer Credit Counselling Service if you are unable to meet your repayments
3. Consider exactly how much you owe before taking on more credit – make a budget and stick to it

¹ Research was conducted online by YouGov in September 2007 and the total sample size was 2,105 adults

ENDS

Results of independent study carried out by YouGov on behalf of Callcredit.

Key statistics:

69pc of consumers in the North East believe that they are not responsible for overindebtedness

66pc of consumers in the North West believe that they are not responsible for overindebtedness

64pc of consumers in Yorkshire and the Humber believe that they are not responsible for overindebtedness

63pc of consumers in the East Midlands believe that they are not responsible for overindebtedness

66pc of consumers in the West Midlands believe that they are not responsible for overindebtedness

71pc of consumers in the East of England believe that they are not responsible for overindebtedness

65pc of consumers in London believe that they are not responsible for overindebtedness

72pc of consumers in the South East believe that they are not responsible for overindebtedness

64pc of consumers in the South West believe that they are not responsible for overindebtedness

63pc of consumers in Wales believe that they are not responsible for overindebtedness

62pc of consumers in Scotland believe that they are not responsible for overindebtedness

About the research:

Research was conducted online by YouGov between 2007 and the total sample size was 2,105 adults.

About Callcredit:

• Callcredit (www.callcredit.co.uk) is the UK's most innovative, state-of-the art credit reference agency, with an extensive range of information and value added services for businesses and individuals.
• MyCallcredit is the consumer arm of credit reference agency Callcredit and provides consumers with online access to the details of their credit file at http://www.mycallcredit.com/
• Callcredit has harnessed state-of-the-art information technology with an unrivalled knowledge of the industry's needs to develop a range of innovative information solutions. Solutions that are enabling major lenders and a host of other blue chip companies to address regulatory requirements, make better credit decisions, target new customers more effectively and manage existing customers more profitably.
• Callcredit forms part of the Skipton Information Group, and is one of five core businesses along with database management company EuroDirect, market analysis firm GMAP Consulting, online payment service provider, Legatio and DecisionMetrics, specialists in the development and implementation of scorecards and affordability assessment.

For further press information contact: Jane Fordham, Katie Moore or Sophie Smith at the Callcredit Press Office on 0207 067 0600 or callcreditpr@golinharris.com

© Callcredit Limited 2001 - 2008. All rights reserved.

Callcredit Limited, One Park Lane, Leeds. West Yorkshire. LS3 1EP.
Telephone: +44 (0) 113 244 1555 Facsimile: +44 (0)113 234 0050 Email: info@callcredit.co.uk