Almost one in five adults in the UK have unsecured debts of over GBP10,000 according to a survey from debt advice firm Thomas Charles.
The survey showed that under-25s represented 61% of those with debt between GBP10,000 and GBP30,000. Two-thirds of those who owed more than GBP10,000 had a personal loan. Just over a fifth (21%) owe more than GBP15,000 on their credit cards.
James Falla, director of Thomas Charles, said: Compared to even just a few years ago, we can see the enormous uptake of unsecured debt across all areas: credit cards, personal loans, student loans. If interest rates rise or unemployment goes up, or if individuals suffer an illness or loss of income, their debts can quickly spiral out of control.
The average debt per adult in the UK was GBP4,021 at the end of 2005, according to a recent Datamonitor report. Several UK lenders have reported increased bad debt in their results and are tightening their lending criteria as a result. The UK’s total consumer debt mountain stands at around GBP1.2 trillion.