Some Brits could be in debt all of their lives

A recent report has highlighted how many consumers in the UK could be facing lifelong debts that will be with them for many decades as a result of high debt levels and low income.

Research was conducted by the Citizen’s Advice Bureau and indicated that many consumers in the UK could be facing debt for up to 77 years. This was based on the people that have been contacting the charity for assistance and advice in relation to their debts.

The debt mountain facing the UK has been the centre of concern for some years, and more and more people have been finding themselves unable to meet their financial obligations and having to find help. According the toe CAB the majority of consumers that made contact in order to get advice and help with their debts were, on average, around £13000 in debt, but were on just half of the national average income.

According to the CAB many of these consumers will face a lifetime of poverty, as they will spend many decades trying to repay their debts with a minimum income. The number of those needing advice and counselling for unsecured debts had doubled in the last eight years according to CAB officials.

David Harker, Citizens Advice chief executive, stated: “Low income, combined with badly informed and poorly understood financial decisions, are at the root of many of our clients’ debt problems. The reality is that they are condemned to a lifetime of poverty overshadowed by an inescapable burden of unpayable debt.”

The Cab is now looking to the government to put forward plans for solutions to these debt problems, such as Debt Relief Orders (DROs) which could help to ease the debt problems for those with high debt levels, low income, and nothing significant in the way of assets.

Tom Smith
28th August 2007

Tags: orders, advice, cab, spend, relief, debts