A survey by UK leading debt solution company, ClearDebt confirms the number of people in the UK struggling with debt continues to rise.

Using data from just over 16,000 people with debt worries, the research shows that the number of people in debt is increasing, whilst the amount of debt they are in is decreasing.

• Debt concerns up by 13%
• Indebted Britons owe £22,000, would take minimum of 39 months to repay debts
• Harrogate debtors owe most in Britain (£41,667 in credit cards and loans). Shrewsbury debtors would take longest to repay (85 months).

Homeowners with debt worries see equity rise (but debtors in NW London have negative equity of – £70,000, after all debts repaid.

The research by ClearDebt confirms a 13% increase of people with debt worries between October 2009 and March 2010 in comparison to those with money worries in October 2008 – March 2009.  The survey also shows debts owed by these people have declined by nearly £5,000 over the same period. ClearDebt believe that whilst the numbers of people with debt worries is rising, heightened awareness of debt issues means that they are seeking advice earlier in the cycle of debt – which may make it easier for them to resolve the problem.

In 2009 the average British homeowner would have been left owing more than £7,812 if they sold up to repay all their debt, this year they’d have nearly £8,400 left for a deposit on a new home.

CEO of ClearDebt, David Mond explains,

The number of people asking us for debt help has increased by 13% between the two periods (October 09 – March 10 in comparison to the same period in 2008/09). What we are seeing is more people than ever before seeking help but with lesser debts. For me, Britain’s personal debt issues are getting more worrying, not less.

A survey by the Commons public accounts committee shows that 11% of UK voters have serious debt worries. We have pointed out that these funts (financial untouchables – people who are trying to deal with their debt but are still disenfranchised by banks) are being treated unfairly by the financial community: Britain’s debt worries could make a big difference to May 6 election result – if they push political parties to change their views on debt.

ClearDebt list the top ten towns for debt as:

1. Harrogate
2. Halifax
3. Guildford
4. Worcester
5. Inverness
6. Tweed (Galashiels)
7. Shrewsbury
8. Chelmsford
9. Medway (Rochester)
10. Torquay

Notes to editors:

To see the latest blog post by ClearDebt – part of the campaign to get  FUNTS treated fairly in this year’s election, please click here.

Access more detailed data on the ClearDebt UK  Debt Survey.

Further information:
Tel:    0161 968 6825 / 07912 407 532
Email:    andrew.smith@cleardebt.co.uk
Twitter    @Andrew_F_Smith
Website    www.cleardebt.co.uk
Twitter    @cleardebt / @IVA

More than one in ten of Britain’s voters has a personal debt problem. Yet, we’ve heard very little said about debt from any of the political parties. Our mountain of personal debt seems, to us, not to feature in political debate. Just as it appears the politicos are hiding from us the costly steps they will have to take to deal with Britain’s bank-rescue induced deficit, so it seems they are hiding from the fact that they are about to try to raise taxes from a nation where millions of people just can’t afford to pay.

It’s about time politicians took steps to help people who genuinely want to do something about their debt and in my next blog I’ll throw a few ideas into the ring.

For now, however, lets just inject some facts into the debate. I took a sample of 16,056 people from our database of people struggling with debt and looked at how things had changed between October 2008 and March 2009 and October 2009 to March 2010 (that’s the latest data we have).

Bearing in mind this data relates to people so worried about their debt that they come to us and ask for help, the top line is this:

• These people owe (just in credit card debts and unsecured loans – NOT the mortgage), on average, £22,061 (that’s £4,774 less than they owed in 08-09).
• If they were to use all their spare income (that not spent on essentials) they would take on average, 39 months to repay their unsecured debt (that’s unrealistically low – I have had to assume that their creditors are charging no interest).
• Finally, homeowners who wish to repay their unsecured debt from the equity in their home would be able, on average, to do so and still have a surplus of £8,391. That’s a huge turn round from last year – when they had an average negative equity of £7,812.

Now, before you run away thinking that these figures show that things are getting better, think on.

The number of people asking us for debt help increased by 13% between the two periods. So, I think what we are seeing is more people, with lesser debts, seeking help than ever before. For me, Britain’s personal debt issues are getting more intractable – not less.

Things vary widely from town to town, too: Britain’s most indebted place is Harrogate – with average unsecured debt of £41,667, taking 42 months to repay. Six of the ten least indebted places are in Scotland. The least indebted places are London (West Central) and London (East Central) – but I tend to ignore those simply because central London data is so variable (all those bankers bonuses – doncha’know).

Here are our top tens (you can download the data in Google Docs spreadsheet below giving our complete lists of debt data for the United Kingdom)

Google Docs 75 Kb

Dear candidates, we think,wherever you are standing, these will convince you personal debt is an issue that is big enough to make a difference to your vote.

Planning to vote at the May 6 UK general election? People in debt are – right now – much more powerful than they think.  11% of Britons are in debt difficulties – that’s enough people to change the result in almost every parliamentary seat!

The general election on May 6 is a great chance to change your future.

Take our quick poll here – it’s the first step in a campaign Debtby, the Debt Monster, is running now – and after the election – to get fairer treatment for people with debt problems.

The banks are still treating people in debt unfairly. They treat you like a FUNT – Financially Untouchable!

The election is your chance to make a difference.

In the days to come the Debt Monster will be showing politicians how important your vote is and how vital it is for them to fight for the rights of those struggling with debt. And we won’t stop once those candidates become MPs.

First, let´s tell the politicians how you plan to vote – so we can show them how important you are.

Take the poll here – it will take you less than 5 seconds!

Thanks for your help and watch out for future blog posts and updates on this campaign.