Tax changes push UK debt to 'tipping point'

Date: 14th April 2011

Britons could be tempted to seek the assistance of a specialist tax accountancy service following the comments of one financial expert.

A report by moneysupermarket.com has claimed that the UK's personal debt issue is now at "tipping point".

Tim Moss, the organisation's head of loans and debt, has claimed that recent changes to the UK's tax system have contributed to the growing problem.

Figures published by the website have revealed that the average personal debt in the UK now stands at £8,400.

However, the study also showed that people do not see their debt as a major worry until they owe £9,700 or more.

"Recent changes in taxation limits, removal of certain benefits and the soaring cost of living has seen many of the nations' personal finances squeezed more than ever and many people will be worrying about their financial situation," Mr Moss commented.

"Making ends meet is hard enough without juggling debt repayments on top. It appears that men take a more lax approach to debt than women and it is worrying that it would take up to an additional £4,500 of debt before they become worried."

Posted by Thomas Fletcher