Abacus Daily Debt News

Debt help enquiries have £26,500 average debt.

The average person taking seeking debt advice in October 2007 owed £26,500 to eight different creditors according to figures from Debt Solution provider Chiltern.

Those unable to maintain contractual credit repayments have an average annual income of just £23,416. Of this 82% was needed to meet essential living costs.

The group found that people could afford to pay only 26% of the minimum monthly repayments they were liable for, with the full repayments they owed equalling about 67% of their monthly income.

It added that if these debt repayments were restructured to affordable levels, it would take the average person coming to it for help 12 years and two months to be debt free.

Women are more likely to take out one of the plans than men, accounting for 58% of the debt management plans arranged by the group during the month.

Chiltern spokeswoman Joanne Gill said:
“The impact of a tightening credit market and interest rate rises is creating a greater interest in debt management programmes but too many consumers are still struggling with their debts and are not fully aware of the options open to them when they can no longer afford to pay their unsecured creditors.”