Used car, debt misery concern

Whilst buying a used car is often seen as a cheaper option, new figures suggest that it could actually end up costing motorists much more in the long run, boosting their chances of needing debt help.

The Office of Fair Trading (OFT) has announced that complaints about second-hand car dealers rose by a fifth (18 per cent) in the first half of this year, compared to the same period in 2009.

£24bn is spent on used cars each year in Britain and the study found that motorists are spending hundreds or even thousands of pounds extra to fix problems, increasing their debt levels in the process.

However, Consumer Direct's Michele Shambrook points out that these issues are actually the dealers' responsibility to fix; news that may lessen drivers' need to find debt solutions when mending their cars.

Kevin Still, Director of Atlantic Finanacial Management says, "False economies can cause serious debt problems, for example, avoiding getting the car serviced, opting for lower levels of insurance cover or selling a reliable vehicle to raise cash and find that cheaper one is more expensive in the long run.

Expenditure shocks like motor or home repairs can cause a debt spiral."

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