Growing amount of people worrying about debt

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by Kay Murchie

A survey conducted by MoneyExtra, the financial services comparison service, has revealed that many people are worried about their growing levels of debt.

MoneyExtra established that 27% of consumers have increased the amount of money they have borrowed in the last 3 months. In addition, one in three adults with debt said they were concerned about their ability to deal with their debts, in particular, mortgage debt.

Sean Gardner of MoneyExpert said the fact that 33% who owe money are concerned or very concerned about their ability to manage their debts is worrying. The 2 recent interest rate cuts will help but it remains the case that borrowers have to take action themselves.

MoneyExpert recommend working out a repayment plan for their borrowing and not ignore their debts. In particular, their mortgages since during 2007, repossessions soared by over 20% to hit an 8-year high.

Earlier this month, Michael Coogan of the Council of Mortgage Lenders, said the amount of repossessions is likely to be higher this year as a consequence of broader issues in the economy and the mortgage funding markets .

Howard Archer, of analysts Global Insight, added that the financial pressure on many homeowners is increasing and it seems certain repossessions will trend up considerably this year, especially if the economy suffers an extended marked slowdown and unemployment starts increasing.