Too many people not doing enough to deal with debt problems, charity claims

Debt awareness charity Stepchange has claimed that too many people are ignoring their financial problems, which could make things worse.

Mike O'Connor, chief executive of Stepchange, commented on thisismoney.co.uk: “The sooner they take action, the easier it will be to solve the problems they face. Problem debt can have a devastating impact, not just on individuals but on families and whole communities.”

According to Stepchange's research, 31 per cent of adult in the UK are showing at least one of the five signs of debt problems, equivalent to 15 million people. Of those displaying debt problems, a quarter said they are not worried about their situation, which the charity says is concerning news.

Six per cent of people have used credit to pay off other credit commitments and two-thirds of these people are employed on a full-time basis, reports credittoday.co.uk.

Besides from borrowing more to pay off existing debt, other key signs of problem debt include: falling behind on essential household bills, borrowing to make it through payday, only paying the minimum on debt repayments and being charged with late payments or overdraft charges.

Nerys Lewis of Confused.com also added that consumers should deal with any credit card debts now before they get worse, after its research found that today (20th of January) tends to be the most popular day to take out a balance transfer card.