FSA warns of dangers of borrowing irresponsibly
Families across the country are being destroyed by heavy debts, as they fail to manage their finances effectively, it has been claimed.
The Financial Services Authority (FSA) has highlighted the increasing number of people who cannot pay back what they have borrowed on loans and credit cards, citing a 95 per cent rise over the past few years in the number of people declaring themselves insolvent.
The nation's cumulative debt has now topped £1 trillion.
The FSA has blamed this problem on a growing tendency on the head of families to borrow heavily so they can spend more easily, rather than using what they earn to top up their savings.
It warned: 'We are seeing signs of growing distress among consumers, including more insolvencies, more late payments on credit cards and a rise in mortgage repossession orders.
'Our research shows that many consumers with significant borrowing commitments are currently struggling to keep up with repayments.'
This problem is further indicated by a 66 per cent increase in the number of home possession orders and a 47 per cent increase in the number of repossessions. | 
