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Consumers dogged by average £40k debt

Published on 26 Jan 2010 under category: legal

Consumers are getting into serious debt because they are too easily tempted by high street credit 'deals'.

A new report from debt experts IVA has found that the average consumer is in £40,000 credit debt because of misunderstandings around how store cards and zero balance transfers work.

IVA's director Terry Balfour said that there had been a 75 per cent rise in enquiries at his organisation since Christmas from "…people unable to manage mounting debts and a constant lament is the unstoppable growth of their credit card debts".

The study found that debt was being racked up because people were not sticking to 'terms and conditions' on zero balance transfer cards. Credit cards were also being used to pay major monthly outgoings such as mortgage repayments.

Women were also the most likely to be in debt to store cards, according to IVA.

Mr Balfour said that the company welcomed the government's recommendations to curb borrowing, but said that it was unlikely that lenders would be keen to institute them.

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