MANY Britons are facing "financial disaster", according to statistics gathered by one of York's leading employers.

Card Protection Plan, which is based at Holgate Park and employs over 1,000 people, has warned that in just seven years the amount of outstanding debt on cards rose by 121 per cent.

This means that a staggering £128.3 billion is owed on UK consumer debt - and over 20 per cent of all disposable household income in the UK goes towards paying it back.

This, linked to a possible future rise in mortgage rates, could lead to the disaster CPP is predicting.

A CPP spokesman said: "A downturn in the economy is expected, so mortgage rates are likely to rise.

"With that will come a requirement for an even greater percentage of household income to go towards servicing debts as well.

"It is a clear recipe for financial disaster for many households."

Updated: 10:19 Thursday, August 23, 2001