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Life insurance vital for £10k debtors

Date: Tue, 18 Apr 2006

New research shows that nearly two million Brits owe around £10,000 in debt on credit cards, loans and bank overdrafts.

Debt advice company One Advice reveals that such debt levels are becoming more normal, especially amongst younger Brits, with 200,000 18 to 24-year-olds owning more than £10,000.

Chris Holmes, chief executive of One Advice, said: "It is worrying that so many people owe so much in unsecured debt. This seems to be rising.

"With many unsecured borrowing products having high interest rates, many people are entrapped in debt, often only paying off the interest accrued every month as opposed to the capital they have borrowed.

"Those caught in this situation need to take action otherwise it is likely that they will fall further into debt."

In addition, many Brits are choosing to ignore that such debt could have a significant impact on the long-term future of loved ones and they are advised to make sure they have significant life insurance cover to provide financial security if the worst should happen.


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