Debt problems turn desperate before Britons seek help

Latest research by debt advice group Payplan has shown that the debt-ridden are waiting until half of their income is used up for repayments before seeking help.

The research, based on over 100,000 of Payplan customers, states that the typical borrower who turns to debt advice is grappling with a £693 shortfall in their monthly budget.

On average, £901.40 is spent each month on debt repayments, whilst total outgoings exceed £2,300; worryingly these people only had an average income of £1,668.  Payplan has put the concerning findings down to people realising that they are no longer able to borrow further to pay off their original debts.

They found that out of all borrowers, pensioners or people entering retirement are suffering more. Britons aged over 60 are coping with a monthly gap of £724 between their income and their expenditure as a result of repaying debt.

Article sourced from www.debtmanagementtoday.co.uk 17th December 2008