The British Need to Pay Off £52bn in Personal Loans

According to the new data released this week £52bn in personal loans should be paid off by the Britons to high street banks.

The British Bankers' Association did a research which revealed that the total value of loans issued in the UK in February of 2010 was £1.3bn.

This is £100m more than the total value of loans issued in January. The figure is also higher than the average monthly value documented for the previous six months.

A BBA representative believes that one of the possible reasons for the increase in loans was the extension of the car scrappage scheme. He also adds that gross lending was mostly matched by higher payments.

The Consumer Credit Counselling Service, which provides free debt advice and help for more than 500,000 annually, published its data according to which one third of the total debt accumulated by its clients is in personal loans.
The charity has more than 100,000 debt management plans, with personal loans accounting for 39% of the total £3.3bn in unsecured debt.