Thu 28th Jun, 2007
UK Still Holds Biggest Debts
Recent reports state that the UK still holds the largest personal debt of all western Europe. The current total stands at £1.3 trillion in mortgages, credit card borrowing and personal loans. Britain is believed to be the most debt-ridden nation in Western Europe.
Statistics from Credit Action estimate the UK debt level continues to increase at £1 million every four minutes. This is in line with increased credit spending and mortgage borrowing. However, when these numbers were hit earlier this year, many analysts expected it to be a short-lived trend.
A conference organised by Citizens Advice Scotland (CAS) and the Debt on Our Doorstep campaign worked to examine the causes of the debt.
“Britons carry the largest debt burden in Europe, and people on lower incomes pay a higher price for that than those in wealthier households,” CAS chairman Graham Blount told the Evening Times.
“The conference will look at why we owe more, and what we can do to bring affordable and responsible credit to Britain.”
Recent reports stated that some of the main reasons for debt are increasing house prices, higher levels of mortgages in relation to annual income, and rising utility prices. Recent figures for credit card spending show that figures have been falling since last year, whilst loan take ups remain fairly static.
One of the biggest problems is also the availability of credit. Many young consumers have a skewed idea of debt, with many teens believing that they do not need to repay the money they spend off the credit cards the Banks hand out as schools.
This has prompted the government to instigate a program for financial education.