UK’s "extreme debt" problems worsen

THURSDAY, JUNE 22, 2006

In a report by the Consumer Credit Counselling Service (CCCS), levels of "extreme debt" in the UK are getting worse. One of the main criteria for definition of extreme debt are borrowing levels exceeding £100,000, and the CCCS has seen the number of clients in extreme debt almost double from 1.4% to 2.7% in the last 12 months.

The CCCS is a charity in the UK providing debt advice and debt management plans for which interest on loans is frozen if a set amount of any loans or debts can be repaid each month.

In the statistical yearbook there are some breakdown statistics on debt levels in different demographic groups, with age identified as a factor. In terms of increases in amount of money owed, the over-60s were the worst affected demographic group, with the CCCS reporting people in this age groups' debt levels increasing to an average of just over £33,000; an rise of 25%.

There was also an increase in the number of people in the 18 to 24 year old range who contacted the CCCS for debt help and advice. The number of your people saw there levels of personal borrowing rise from £11,000 to just over £15,000 in the last two years.

Of the 280,000 people in the UK who contacted the CCCS with debt-related issues, the 40 to 59 year old range had the highest levels of personal debt, owing an average of £34,456.