A tenth of Britons with severe debt problems owe more than £60,000, excluding mortgage payments, according to latest research.
One in ten people facing bankruptcy, were found to have debts over £60,000, showing the full extent of the debt management crisis faced by many financially overstretched households.
The report on the Telegraph website also outlined the average amount owed by people experiencing bankruptcy, (or who were on a debt management plan or an Individual Voluntary Arrangement) was £25,115, and showed that almost a quarter of people in debt don’t know how long it will take them to pay it off.
Ivan Cooper, Chairman at debt management company Chiltern, said: “Worryingly, this figure should be surprising but we have had cases where people have developed debts of six figures, and that’s excluding mortgages and other secured debts.
“It just goes to show that my debt problems are left too late, and could be sorted sooner to prevent them escalating to these levels.”
The study also found that people still felt embarrassed to admit that they couldn’t cope with their finances, as one in seven people refused to seek any help at all due to the social stigma attached.
Pensioners in Britain most likely to have debt management issues
