Half Brits have £10,000 of unsecured debt
Tuesday, 10 January 2006 12:00
Almost half UK consumers have unsecured debts of more than £10,000 - new data suggests.
A poll of the users of the Moneyfacts.co.uk website found that 47 per cent of respondents have a five-figure sum on credit cards, overdrafts and personal loans.
"Almost half of the people completing the polls having unsecured lending of more than £10,000 is a concerning yet not surprising statistic and in line with reportedly high levels of indebtedness in the UK," said Emma Butler, Moneyfacts.co.uk editor comments.
"With interest rates at their current low level, most consumers are managing to service their high levels of debt; however UK banks are already reporting an increase in bad debt levels and with utility bills set to rise this year, the situation is likely to get worse."
Moneyfacts also revealed today that nine out of ten of its users (89 per cent) are planning to take out a new personal loan in the next 12 months.
"As a result of the increase in bad debt levels, lenders are tightening up their credit scoring policies and you will need a near perfect credit history to obtain the lowest rates. It is therefore as important as ever that consumers shop around to ensure they are getting the best deals on their borrowing," Ms Butler noted.
And shopping around is apparently important to consumers, with 87 per cent of Moneyfacts' users thinking the rate charged on a loan is more important than a high street brand.
To find a cheap unsecured UK loan, go to www.myfinances.co.uk/loans.htm
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