Brits `increasingly worried about ability to handle finances`

Nearly a third of UK consumers who owe money are concerned about their ability to manage debts, new research has found.

According to MoneyExpert, 27 per cent of people with debt problems have admitted worries about their ability to handle financial matters, with many looking for help through debt management schemes.

The study found that an estimated 2.03 million Brits have increased the amount they owe by as much as 20 per cent over the last year, as debt problems continue to mount.

Sean Gardner, chief executive of MoneyExpert, said: "The fact that one in three people who owe money are concerned or very concerned about their ability to manage their debts is worrying.

"The interest rate cuts in December 2007 and this month will help but it remains the case that borrowers have to take action themselves."

According to Credit Action, the average UK consumer owed £8,985 in loans, credit card bills and overdrafts at the end of December.