"Extreme" debt cases double says charity

The number of people in the classified as struggling with "extreme" debt has doubled in the course of a year, the Consumer Credit Counselling Service (CCCS) has warned.

The number of people approaching the charity owing £100,000 or more in unsecured lending doubled from 1.4 to 2.7 per cent over 2005, it said.

The biggest increases in debt were found among the over-60s, said the CCCS, with average debt increasing 25 per cent to £33,568.

People aged between 40 and 59 remained in the worst financial state, however, with average unsecured borrowing of £33,456.

Young people were in a none too great financial state either, with the number of 18 to 24 year olds seeking financial help from CCCS up five per cent in recent years.

Their average borrowing has increased from £11,934 in 2003 to £15,079 this year.

"It's no surprise that debt levels are rising and that increasing numbers of people are getting into difficulty, but it is disheartening to discover that it is the older age groups whose debt is rising the fastest," said Stuart Glendinning of Moneysupermarket.

"It is undoubtedly the case that many unsecured loan providers have tightened their acceptance criteria in the last couple of years and this is making it harder for younger people, especially those who are not homeowners, to access money."

The number of people seeking bankruptcy protection has doubled in recent years.

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