Debt 'still increasing' in the UK

A home is being repossessed every 11 and a half minutes in the UK, it has been reported.

Latest figures from Credit Action show that the recession is starting to affect more households, with an increase in the number of people seeking free debt advice also rising.

The charity reports that 9,300 per day are seeking support advice from the Citizens Advice Bureau as they bid to tackle their financial concerns.

Total UK personal debt stood at £1,459 billion at the end of September, Credit Action stated, up by 0.8 per cent over the previous 12 months.

Last week, Howard Archer, chief UK and European economist at IHS Global Insight, said the high level of personal debt in the country was limiting the ability of consumers to boost the domestic economy.

He suggested that UK households "are pretty highly indebted" compared to those in other countries around the world, meaning consumer spending continues to be heavily constrained.

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2009-11-03 12:38:32 © Moneyextra.com