UK debt could be set to explode this year according to MoneyExpert.com, as just one in eight Brits who are in debt seek help despite warnings of increased repossessions and bad debts.
The research found that, although 13 per cent of adults in debt
have asked for help with their borrowing due to economic fears, 51 per cent have yet to seek help or advice.
The study also found that those who have not yet sought debt advice
are concerned about their ability to cope in the current financial climate. And 27 per cent have been forced further into debt in the three months leading up to December 1 2008.
Commenting, Sean Gardner, director of MoneyExpert.com, said: "Debt has been a ticking timebomb in the UK economy for the past few years with regular warnings that it's about to go off. The fear must be that 2009 will see the explosion."
MoneyExpert.com advises those who are dealing with debt problems
to seek help as early as possible. Mr Gardner added: "The fact that one in eight adults has sought debt help shows that debt advice is a growing industry and demonstrates that there is help out there."
And, as it has emerged in The Times today that council tax arrears are contributing to the mounting financial pressures felt by households, debt help and advice may be required by more and more Brits.
Mr Gardner added: "Interest rates are falling fast and you'd think borrowing would be cheaper than ever. But the fact is lenders are in dire straits and their number one priority is recovering bad debt – which is not good news for borrowers looking for a bit of leeway as times get tough."Seek debt advice today »
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