Danger of secret debt

The tragic story of Richard Cullen, who committed suicide this month after building up debts of £130,000 on 22 different credit cards, shows that everyone must start communicating openly about debt.

Until just before his death, Mr Cullen had been using one card to pay off another, so no problems were reported until the situation was well beyond his control.

Although he probably felt alone in his predicament, figures from the Consumer Credit Counselling Service (CCCS) last week show his experience is far from rare. The service says 815 of its clients have unsecured debts of more than £100,000, 2,322 have a debt to monthly income ratio of more than 66 to 1, and 178 have 16 or more credit cards (the highest number of cards was 48).

The service's Frances Walker says: 'These may be the tip of the iceberg. These people at least sought help. How many others are there?'

People are struggling with mortgages too. The number with three months' arrears has soared to 92,000, and is expected to rise to 112,800 by the end of the year. The Council of Mortgage Lenders predicts that 8,350 will lose their homes in the next 11 months.

The CCCS says many lenders tell credit reference agencies only when a customer has defaulted on the minimum payment for three months in a row, enabling them to go on borrowing beyond their means. It wants openness between lenders about the amount lent to avoid further cases like that of Richard Cullen.

But borrowers must also learn to be more open. If you think you will have difficulty paying, talk to your family, friends and to free advisory services such as the CCCS (0800 138111 ) about how to deal with your debts. Above all, talk to your credit card and mortgage lenders. They may cut your monthly payments or even freeze interest charges, but can only do this if you keep them informed.