More people to seek poor credit credit cards as personal debt increases?

More people may seek poor credit credit cards over the coming year, as lovemoney.com has suggested personal debt is set to increase.

Ed Bowsher, head of consumer finance at the money advice site, said that people are keen to reduce their debt, but that ever-increasing unemployment will force some to borrow more over the next 12 months.

His comments follow Credit Action's release of the latest UK debt figures, which showed a slight increase in personal debt.

"At £1,460 billion, total UK personal debt is shockingly high. Individuals owe more than what the whole country produces in a day," Mr Bowsher said.

He added that the only "good news" is that debt levels are now rising at a slower rate than before.

Mr Bowsher highlighted the fact that as interest rates are at a record low, borrowing is very cheap, but conceded that a lot of people are worried about taking on more debt.

Posted by Martin Peacock