Abacus Daily Debt News

Those looking to reduce debt ‘need to work hard’

People are beginning to realise they need to work hard if they want to end up debt free, one expert has claimed.

Ed Bowsher, head of consumer finance at lovemoney.com, noted it is "depressing" that personal debt has increased again and the situation has to be addressed.

It means those who are looking to clear their debts may want to think about using consolidation plans to do so.

Mr Bowsher observed there has been a change in the mindset of how arrears are now viewed, with many treating them as a "huge albatross".

He added with the Office for Budget Responsibility predicting the situation is likely to get worse, action needs to be taken.

"Higher interest rates will make it harder for people to repay their loans and we could see more insolvencies and people facing debt crises," the specialist observed.

Mr Bowsher's comments come after the Bank of England's Trends in Lending report showed interest rates on credit cards increased slightly in June.

Posted by Rory Mallon