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13 January 2006
A new survey has given an insight into the circumstances surrounding individuals' debt crises in the UK.
The Debt Counsellors' Annual Debt Survey 2005 found that 46 per cent of people who approached their members for help owed more than £20,000, while 13 per cent had outstanding debts of over £50,000.
Contributory factors which led to people spiralling into financial strife included redundancy, divorce, illness and bereavement - but the survey showed that two people in five blame their own poor financial management and overspending for their worries
The results stated that 91 per cent of cases involving debt counsellors are to do with credit card debt, with 84 per cent seeing personal loans have some involvement and 47 per cent of people owing money on store cards.
Senior debt counsellor John Porter said: "The fact that many of these debt problems have been caused by bad budgeting, overspending and general poor judgement is evidence that too many people are waiting too long to take advantage of professional advice and debt counselling.
"The level of debt is a real concern and shows that people tend to delay seeking advice until their debts are serious and out of their control.
It was suggested that a fall in income can be another factor which prompts people to slip into debt, with some finding it difficult to cope with the resulting need to cut back on expenditure.
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