A third of the debt causing problems for British borrowers is made up of
personal loans, according to new figures from the Consumer Credit Counselling Service (CCCS).
The charity, which helps people to work through their
debt problems and arranges repayment or write-off plans for people who can’t afford their debt, says 39 per cent of overall consumer debt is taken out through
personal loans. Some 46.3 per cent is made up of
credit card debt.
Malcomb Hurlson, the chairman of the CCCS, says that the landscape has changed somewhat recently. He explains that, despite having 100,000 debt management plans currently in place, one in three people approaching the service for help does not qualify for Individual Voluntary Arrangements or debt management plans, according to its annual review figures.
He explained, "It is rare for an annual review to reflect such rapid change. The new penury has struck many people who would ordinarily not have fallen into debt on the basis of their borrowings alone."
The average person who approaches the CCCS for help with their debt, has total unsecured borrowing of £29,000 and is in their mid-30s.
