£10,000 debts of Londoners

Almost half of all Londoners are £10,000 in debt as borrowing escalates to an all-time high, research reveals.

Up to one in three Londoners has had to pay off household bills using loans and credit cards, while almost one in five is up to £40,000 in debt - without including mortgages. Holidays and cars are the most cited causes.

The survey of 2,000 people for accountants KPMG found low interest rates were encouraging them to borrow beyond their means.

KPMG's Carolyn Steppler said: "Many people are going to struggle to pay back these loans."