Debt worries 'to grow in run-up to Christmas'
Debt stresses will grow as Christmas approaches
Tuesday, 29, Jul 2008 12:01
The run-up to Christmas will see increasing debt strains for UK households, according to new research.
The TDX Group Debt Index points to a rise in the number of individual voluntary arrangements (IVAs) and debt management plans (DMPs) - plans that are put in place to help those with debts - as the cost of living rises and the downturn in the housing market puts consumers under further pressure.
DMPs current account for personal debt of £10 billion, but this is set to rise by £5 billion by Christmas.
Mark Onyett, chief executive of TDX Group, said: "The latest findings from our Debt Index show a mixed picture, with lower credit losses offset by a rapid decline in household wealth.
"But given the bleak economic backdrop, it's unlikely that the picture will be positive for much longer.
He added: "We're already seeing far higher numbers of consumers struggling with personal debts and the pressure is set to intensify over the coming months."
The TDX data - which measure the state of the debt collection industry - show borrowers are finding it harder to repay their current debts.