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Secured debt growing, says Credit Action

21 September 2007
While in the past many people in debt were struggling to cope with their unsecured borrowing, one expert has suggested that there has been significant growth in debt from secured loans.

Chris Tapp, deputy director of Credit Action, claimed that while people continue to get into debt with credit cards, unsecured loans and overdrafts, more consumers are struggling to meet their mortgage payments.

House prices have risen at such a rate that people have been "forced" to borrow larger sums in order to get onto the property ladder, Mr Tapp said, arguing that many are left without financial "breathing space" each month.

"When people are stretched with the amount they have to borrow, then it doesn't take very much to tip them into difficulty and I think that's what we've seen with people struggling with mortgages," he commented.

According to statistics published by the charity, the average outstanding mortgage for households in the UK stands at £96,560.

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