One In Three Worried About Debt

We are all feeling the strain of the credit crunch and keeping a close eye on the purse strings. However, it seems that a third of us are seriously worried.

Debt is said to be a concern for one in three people in the UK, new research reveals.

According to a well known online financial services company, 33 per cent of adults are worried about their level of arrears, with nine per cent said to be very concerned. The firm added that 47 per cent of people now owe money on credit cards, while three months ago this figure was 41 per cent - something which may be down to seasonal spending.

According to a chief executive of the company, this is distressing. It means that despite all the warnings many people are still using their credit cards to help with household bills. This could mean that more people will be defaulting in the future which is not good for the economy.

"The fact that one in three people who owe money are concerned or very concerned about their ability to manage their debts is worrying," he said. This comes from the huge financial boom of the nineties when everyone had a credit card and spent money like it was going out of fashion. It was not news if people had second mortgages to do home improvements or have a fantastic holiday. We all spent money for now and did not think of the consequences down the line.

Meanwhile, the Banking Times cites figures from the Ministry of Justice which show that more people voluntarily filed for bankruptcy last year. This may increase going forward as more us find it difficult to pay our rising debts.

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