It is reported that British consumers owe a staggering £1.398 trillion and pay out £93 billion in interest on personal loans, credit cards, overdrafts and mortgages but are still more likely to go on a diet or jet off on holiday than try and sort out their finances in January.

Nearly a quarter of consumers used loans or credit cards to finance the festivities over Christmas and a recent survey has shown that many people are worried about the bills arriving in the New Year with many too scared to open them. 58% of people surveyed had no idea of the cost of Christmas whilst others were aware but overspent anyway.

Almost one in four UK adults claim to be finding their debts unmanageable while 9.5 million have reached their maximum limit on one form of credit in the last six months with around 38% having their credit applications declined.

Consumers should now be aware that the credit boom enjoyed over the past few years is coming to an end with providers tightening up their lending criteria. More than one in three people who applied for a new credit card have been rejected whilst 19% have had unsecured loan applications declined.

Recent research has shown that irresponsible borrowing and lending are the main factors contributing to the growing personal debt problem. Many people report that they were not asked by their lender whether they intended to pay off an existing debt before being offered further credit while many borrowers admitted to taking more on credit than needed believing they were entitled to treat themselves or intending to keep the spare funds for a "rainy day"

Many people are quick to take on credit they cannot afford and then find themselves spiralling into debt. Many who consolidated their borrowings in 2006 failed to close down existing forms of credit resulting in additional debt due to their lax attitude to debt.

If you find that your debts are taking over your life, contact EuroDebt who can arrange a Debt Management Plan which is informal repayment arrangement between you and your creditors that is administered by a licensed Debt Manager.

EuroDebt will arrange a personal home visit to ensure that they have a clear understanding of your circumstances before offering advice and strongly believe that it is crucial for the industry as a whole to operate best practice when it comes to providing solutions to people who are in financial difficulties.

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Article referenced from http://www.fairinvestment.co.uk/loans-news-Personal-debt-hits-£1.39-trillion-but-Brits-too-scared-to-open-post-Christmas-bills-988.html