Mixed messages from debt experts
A new report by the Consumer Credit Counselling Service (CCCS) has left a contrasting picture of Britons' management of their debts.
The organisation reports a ten per cent rise in the average level of debt owed by individuals in its debt management plan in 2005, with total unsecured debt in the UK growing by 5.9 per cent.
It said these statistics reveal a worrying growth in the level of 'problem debt', defined as money that the borrower struggles to repay.
However, during 2005, there were also signs of sounder debt management from those seeking help with the CCCS, with 52,000 clients paying off £99.2 million to their lenders on 420,000 accounts, a 29 per cent rise on 2004.
CCCS Chairman Malcolm Hurlston said: 'There were signs from our data over the course of 2005 that debtors are waking up to their financial solutions and seeking help earlier for their debts.'
The organisation attributes these improvements to the effect of rising salaries and living standards on personal finance management. | 
