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Traditional debt worries `overtaken by mortgage hikes`

19/09/2007

Personal debt consolidation problems have changed in recent times as mortgage repayments overtake credit card debts as the main source of worry, a financial expert has claimed.

While traditional debt problems have concerned credit cards and unsecured personal loans, rising house prices and interest rates mean more income is being used for mortgage repayments than ever before, according to Credit Action.

Chris Tapp, deputy director at Credit Action, said that when any debt occurs, it does not take much for consumers to be tipped "into difficulty", which is currently being seen with mortgage repayments.

Mr Tapp added: "I`m not sure that it is necessarily either people borrowing irresponsibly or being lent particularly irresponsibly, it`s just economic factors combining to really stretch people`s budget."

Figures from Credit Action show the total UK personal debt at the end of July 2007 stood at £1,355 billion.

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