Insurance News Archive

Unsecured debt hitting Britons hard

Rising levels of unsecured debt are causing financial hardship for many British consumers, the Council of Mortgage Lenders (CML) has said.

The council's claims follow research from the Bank of England which shows that ten per cent of people who rent houses and have loans owe more than their annual income.

Bernard Clarke, spokesperson for the CML, said the growth of unsecured personal debt "affects people who have mortgages as well as those who do not".

He added: "The rapid growth of unsecured debt has produced some well-documented problems for some people who have taken on too much debt."

CML figures also suggest that, although there is a regional disparity across the country, renting is usually the cheaper option.

13 Dec 2006