One third of borrowers worried about repaying debt
Nearly one-in-three indebted people are worried about managing their debts, according to price comparison site Moneyexpert.
The website’s Debt Index, which measures people’s attitudes towards personal debt, found that 27% of consumers surveyed (more than 2m people) who have debts, have increased their borrowings in the last three months. A further 9% of consumers – 3.04m people – said they were very concerned about their ability to manage their debts.
However, the number of people who are either unconcerned or very unconcerned about being in debt accounted for a much larger amount, with around 12.7m people saying they were not worried about their ability to cope with being in debt.
Sean Gardner, chief executive of MoneyExpert, said: “The fact that one-in-three people who owe money are concerned or very concerned about their ability to manage their debts is worrying. The interest rate cuts in December 2007 and this month will help, but it remains the case that borrowers have to take action themselves. The Christmas spending spree has undoubtedly had an effect and many who have increased their borrowing will probably clear their debts in the next few months.
“There are many ways for people to get their finances under control. Whether you need to consolidate your debts with a loan or just juggle your borrowing onto cheaper products, the important thing is to work out a repayment plan and not bury your head in the sand.”