Eight million Britons have unsecured debts of more than £10,000 and are struggling to meet monthly repayments, according to new research.
Debt on credit cards and store cards is largely to blame for the soaring levels, which have risen considerably over three months. In April this year 14 per cent of people owed £10,000 or more.
That proportion now stands at 18 per cent – almost a fifth of all adults, according to Thomas Charles, a debt consultancy firm. The research also showed that a quarter admit that they regularly struggle to meet repayments.
The research comes as the Bank of England’s Monetary Policy Committee debates its sixth interest rate rise in less than a year, which will push even more people into debt.
Rates were increased to 5.75 per cent last month – their highest level for six years.
The Bank has already been warned by business leaders that another rise will cause “serious economic damage” and would be “very dangerous” for the housing market and industry. Many families are struggling as the cost of living – particularly fuel and food – keeps increasing.
8 million Britons have debts above £10,000