Two million in UK face £10k or more debt says survey

Around two million people in the UK are in debt amounting to more than £10,000 on credit cards, personal loans and overdrafts, debt advice company One Advice has claimed.

Almost a quarter of these are facing unsecured debts of more than £20,000.

Borrowers aged 35-44 are the worst hit, with around 650,000 owing upwards of £10,000.

A younger generation is catching up fast however, with 200,000 18-24 year olds owing more than £10,000.

"It is worrying that so many people owe so much in unsecured debt. This seems to be rising," said Chris Holmes, chief executive of One Advice.

"With many unsecured borrowing products having high interest rates, many people are entrapped in debt, often only paying off the interest accrued every month as opposed to the capital they have borrowed.

"Those caught in this situation need to take action otherwise it is likely that they will fall further into debt."

Almost one million owe more than £10,000 on personal loans, 350,000 owe the same figure on credit cards and 83,000 on overdrafts.

Banks are not the only ones at risk of bad debt however, says One Advice, with much of the cash owed to borrowers' friends and families.

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