Credit card debt decreased in 2008

Personal loans, mortgage debt increased, however

By UK CreditCards.com

Credit card debt in the UK fell by £4.9bn in 2008, according to a study by consumer advice website Unbiased.co.uk.

Research revealed that while Britain's credit card debt decreased, personal loan debt levels in the UK rose to £11.4bn, while mortgage debt increased by £6.5bn during last year.

However, the firm stated that consumers should be able to reduce their debt due to the average interest rate on personal loans now being 3.25% lower than in 2008.

David Elms, chief executive of Unbiased.co.uk, said that although dealing with debt is daunting, support and advice can be found. "With interest rates at a record low now is the time to seek independent financial advice to ensure your money is working as hard as it can and any debt is being repaid as quickly as possible," he said.

Previous research by the website revealed there has been a 20% increase in the number of people seeking financial advice during the last four months.

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Published: 30 March 2009