Personal debt `overtakes earnings`

New research into levels of debt amongst British consumers has suggested that the average person now owes more money than they earn each year.

Comparison website Confused.com claims that for every £1 they earn, the average person owes £1.02 in debt.

The study looked into the amount of debt owed on credit cards, mortgages, loans and hire purchase deals, and compared this with average annual salaries.

A spokesperson for debt management company Gregory Pennington said: "Given that most people`s mortgages are (at least initially) several times the size of their salary, it`s no surprise that average total debt exceeds people`s annual salaries, but high levels of debt on things like loans and credit cards are potentially very serious.

"In a recession, it`s particularly important that borrowers tackle their debts in the right way. We advise anyone struggling with debt to seek expert debt advice as soon as possible."

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Gregory Pennington offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.