Fears over consumer debt increase

Wei-Yeun Lai says getting credit is too easy

People in Wales may be facing more serious debt problems than in the rest of the UK, according to a report.

The survey by Welsh Consumer Council said that the average amount owed in Wales is around £4,500.

I know that I am in £30,000 worth of debt but I have since learnt that if I don't default on my payments I can actually go out and get another credit card

Office worker Wei Lai

It claims there is evidence to suggest the problem is more prevalent in Wales than it is elsewhere.

The report said that the Welsh economy is under-performing in comparison with the rest of the UK and that as a result there are higher levels of unemployment.

Wei Lai an officer worker from Cardiff has acquired £30,000 worth of debt she has admitted that it is a major problem.

"The most I spend in one shopping trip is around £500 but when you are doing that twice a week the debt mounts up," she said.

"I think credit is definitely too easy to get hold of.

"I know that I am in £30,000 worth of debt but I have since learnt that if I don't default on my payments I can actually go out and get another credit card."

Problems with debt are on the increase

In one deprived area of Gwent, one in 10 people have sought advice on money or debt problems in the last two years.

In poorer communities, delays and errors in benefit claims often lead to problems in meeting rent or mortgage payments and difficulties in keeping up with household bills.

One of the main sources of help is the National Association of Citizens Advice Bureaux (Nacab), which provides a free counselling service to people with debt problems.

They have said that debt inquiries relating to consumer borrowing have risen by 66% over the last five years.

Trading standards officials have warned that loan sharks are increasingly preying on vulnerable borrowers.