Eight million Britons have five-figure debts

Britain’s debt crisis is worsening, new figures released today show.

According to debt consultancy firm Thomas Charles, eight million Britons – one fifth of the entire adult population – hold debts of over £10,000.

The firm largely blamed heavily advertised store cards and credit cards for the growth of the problem.

Director of Thomas Charles, James Falla, said that the figures show a “sharp increase” in debt holders over the last year.

“These high levels of debt are linked to the rise in interest rates over the year”, he added.

The Bank of England’s monetary policy committee has also announced today that it will not be increasing interest rates for August.

Rates had been raised five times in the previous twelve months to 5.75 per cent, putting the squeeze still further on indebted Britons.

The chief economist at the Institute of Directors, Graeme Leach, termed the decision “a pause for thought”, and said that a further rate rise to six per cent would likely come in the autumn.

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Brits urged to borrow sensibly

British consumers are being encouraged to make sure that they only borrow what they can reasonably pay back.

Debt advice firm Thomas Charles is calling upon Britons to take control of their finances following the expensive Christmas period.

The company says January and February are some of the worst months for consumers when it comes to falling into debt.

This is put down to over spending during the festive season and often results in people borrowing more money to see them through the difficult period.

James Falla, director of Thomas Charles, says consumers need to ensure that they are only borrowing money which they can afford to repay.

“If you are taking a loan, then you should know full well that you have to pay back an amount every month,” he said.

Consumers are also advised to take a proper look into the best ways of borrowing money and see which method is best suited to their circumstances.

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