Consumers face 93-year debt burden, warns Citizens Advice

Consumers seeking debt advice will take an average of 93 years to repay the money they owe at a rate they can afford, according to Citizens Advice which has reported a doubling of debt enquiries in the last decade.

The charity’s bureaux have been overwhelmed with people seeking help as the recession deepens, with some people having at least 10 credit debts spanning credit cards, overdrafts and personal loans.

Citizens Advice is now dealing with an average of 7,241 new debt problems every working day. Low income, over-commitment, illness or disability and job losses were cited as the most common reasons for seeking advice.

Lenders’ irresponsible lending, poor financial skills and the soaring cost of living were also behind the influx of people who between them owe an average of £16,971. This is more than two-thirds the figure in 2001 and more 18 times their total monthly household income.

Citizens Advice chief executive David Harker warned that things would get worse: ‘We can expect to see many more people struggling with severe debt problems as the recession continues to take its toll.

‘For many there is little prospect of their income increasing or their circumstances changing. The reality is that they are condemned to a lifetime of poverty overshadowed by an inescapable burden of unpayable debt.’