Despite levels of bankruptcies and county court judgements being at an all time high, consumer borrowing continues to rise.
The Office of National Statistics revealed that the majority of household spending goes on housing and bills, with the annual consumption figure now at £162 billion. The Lord Chancellors department revealed that there were 837,630 county court judgements on mortgage arrears in 2001, with 142,780 mortgages in arrears by more than three months.
A spokeswoman for the Citizen's Advice Bureau confirmed that 40% of people surveyed last year had borrowed money to pay off other debts and felt unable to cope and in crisis. The Citizen's Advice Bureau have noticed a sharp increase in consumer credit debt that people are seeking advice on.