£10bn debt doubles British prediction

Published on Monday 23 July 2007 00:05

BRITONS collectively owe around £100 billion more than they realise, according to new research.

Market analyst Mintel said people were "burying their heads in the sand" when it came to debt, with consumers typically owing twice as much on credit cards, loans and overdrafts as they thought they did.

It said the average person thought they owed 5,251 in unsecured debt, but Bank of England figures show the amount is nearly twice this at 10,300.

By contrast, those with a mortgage were much more likely to have a clear idea of how much they owed, with homeowners estimating they were an average of 92,200 in the red - not far off the actual figure of 95,000.

Toby Clark, senior finance analyst at Mintel, said: "While Britons do seem to have a good grasp of their mortgage borrowing, they are wildly under-estimating the amount of money they owe on credit cards and loans."