Debt continues on upward spiral

The debt situation in Britain is getting borrowers and lenders more and more in the red.

The debt crisis in Britain is so extensive that the majority of people would have to give up their loan payments within several months of losing their job, according to a new survey.

The results from the Combined Insurance Company revealed that over 50 per cent of borrowers could not afford to continue credit card and loan payments after three months if they were unemployed.

Other statistics from the Citizen's Advice Bureau have shown that numbers of borrowers with over £100,000 debt are on the increase.

The situation is so bad, that the CAB is now advising people to declare themselves bankrupt due to the size of their debts.

Sue Edwards from the CAB, said: "Our bureaux are seeing more and more cases of bad debt every week - many with huge debts built up from several creditors. Levels of debt over £100,000 are not uncommon any more."

Banks have also implemented precautions for those people defaulting on their payments, setting aside around three billion pounds nationwide to cover bad debts.