More debt taken on in January

According to the Bank of England`s latest `Lending to individuals` report, consumers took on more unsecured debt than they repaid in January.

The amount of unsecured debt owed increased by £0.5bn in January - which, according to the Bank of England, is `above the previous six-month average of a net repayment of £0.2bn, and also above December`s net increase of £0.3bn`.

The amount of debt taken on through credit card lending increased by £0.2bn, while `other loans and advances` rose by £0.3bn.

Overall, including secured debt, the total amount of debt owed by individuals increased by £2.0bn in January.

A spokesperson for debt management company Gregory Pennington commented: "On the one hand, it is encouraging to see both borrowers and lenders becoming more confident about money.

"However, borrowers should bear in mind that a drop in income and/or a rise in their expenditure could leave them unable to repay what they have borrowed. With that in mind, individuals should think carefully before taking on any debt, questioning whether they would be able to repay it if their circumstances changed."

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Gregory Pennington offer debt advice and 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.