The Debt Counsellors Annual UK Debt Survey 2006 focused on the major causes of personal debt in the UK. The personal debt in the UK is around £1.25 trillion and is increasing at a rate of by £1 million every 4 minutes. According to the survey conducted the major reason for the rise was drop in income. Around 23.2 % of the respondents believed that this was the major cause of the rise in the personal debt.
Job loss was the next reason with 4.7% of the people believing it to be the major reason. 8% of the people blamed difficulty in relationship as a reason with 3.6% pinpointing divorce as the particular reason. The other reasons that the people gave were gambling - 2.3%, health problems - 6.3 %, being a single parent - 6.8 %. Well I guess that the major reason for the rise in personal debt is contingencies, so the only way out is to plan for them. All you need to do is to plan your future well in advance.
