The total outstanding debt across the UK now stands at GBP 830 billion, equivalent to GBP 18,000 per household (BBA figures) and it is rising to the point where many people can’t afford to repay their debts.

Three in five (60%) people who have a credit history of Defaults and County Court Judgements (CCJ's), blame the cost of running a home as the main cause of their debt according to new research from The Mortgage Lender.

The findings echo the warnings cited this week by the new Governor of the Bank of England, Mervyn King that the "feel good factor" previously created by economic optimism and rising personal incomes was gone and would not return within the near future.

Mr King's statement coincided with claims that council tax would rise by £100 for millions of families over the next year and further claims that personal borrowing has soared as people expect pay rises in order to manage this debt. The cost of every day living is constantly escalating and for people already in financial difficulty this can also lead to a downward spiral and further debt in the future.

However, The Mortgage Lender found that despite the fact that people can readily blame their debts on things that are out of their control, people are all too ready to blame "others" for their financial problems.

One in two (44%) people who have missed repayments on their debts blame their adverse credit rating on the fact that it's "too easy to borrow money", and one in four people (25%) blame credit card bills for their debt.

As part of their on-going studies into consumer sentiment and debt, The Mortgage Lender asked a GB representative sample of 2,000 people if they were in debt and, if so, the cause of this debt.

Key findings:

• A third of people (33%) who had no history of credit problems blamed their credit cards for getting them into debt. Credit cards are often the easiest way to get into debt due to the number of direct mailings on the products people receive through the post. Many people also have more than one credit card and limits are often increased to encourage more spending.
• No one who had defaulted or had CCJs on their record blamed the cost of getting themselves through university, showing that graduates managed to handle their debts after university and repair any damaged credit records.
• Those surveyed who were in debt and had missed a number of payments in the past thought it was too easy to borrow money (44%) and blamed easy accessibility for their problems.
• Household bills were the main debts of the majority of people who had a credit history of Defaults and County Court Judgements (CCJ's) with nearly two thirds (60%) blaming household bills for their debts. With the recent increase in council taxes, the cost of day-to-day living has increased.

Tim Kirby, Managing Director of The Mortgage Lender, said:

"These findings show that people who have a good credit history still find credit card debt the most acceptable and easiest form of arrears to handle."

"However, for those who have seen their debt spiral out of control and as a result missed or defaulted on payments, it is often too easy to extend their debt and find a short-term solution to their financial problems rather than to get on top of their finances - particularly with the escalating cost of living in the UK."

"However, it is worth remembering that there is always a solution for those striving to amend their financial situation. While the hardest task for many is facing up to the extent of their debt, once this is done help is available to make their repayments manageable and get them on the road to financial recovery."

If you are worried about debt you can contact the National Debtline on 0808 808 4000.