Nature of debt 'is shifting'
New factors are causing people to get into trouble with debt compared to the past, it is claimed.
According to Credit Action deputy manager Chris Tapp, whereas personal finance debt prominently emerged from unsecured credit in the past, mortgage payments are the main culprit of bad credit today.
Figures from the charity reveal that the average outstanding mortgage payment among Britain's 11.8 million borrowers is currently £96,560.
Mr Tapp believes that rather than irresponsible borrowing or people failing to compare mortgages effectively being to blame, the problem has emerged from growing house prices among other economic factors.
More people need help with debt from the charity, he added, because of additional problems with bad credit from loans, credit cards and overdrafts.
"We've seen such growth in house prices that people have been forced to borrow very large amounts of money if they want to get onto the housing market," Mr Tapp said.
Total personal finance debt among Britons by the end of July 2007 stood at £1,355 billion, according to Credit Action statistics.
According to Credit Action deputy manager Chris Tapp, whereas personal finance debt prominently emerged from unsecured credit in the past, mortgage payments are the main culprit of bad credit today.
Figures from the charity reveal that the average outstanding mortgage payment among Britain's 11.8 million borrowers is currently £96,560.
Mr Tapp believes that rather than irresponsible borrowing or people failing to compare mortgages effectively being to blame, the problem has emerged from growing house prices among other economic factors.
More people need help with debt from the charity, he added, because of additional problems with bad credit from loans, credit cards and overdrafts.
"We've seen such growth in house prices that people have been forced to borrow very large amounts of money if they want to get onto the housing market," Mr Tapp said.
Total personal finance debt among Britons by the end of July 2007 stood at £1,355 billion, according to Credit Action statistics.
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