Third of Brits ‘Reliant on Debt to Make Ends Meet’

March 22, 2017

As many as one in three UK consumers consider themselves to be reliant on debt and credit to get by financially on a month to month basis.

That’s according to new figures released by the price comparison company MoneySuperMarket, which has noted a substantial rise in overall indebtedness throughout the country.

The numbers show that three-quarters of British adults now owe money to creditors outside of their mortgage lenders and the average amount owed is up to £6,372.

That average debt figure represents an increase of 5 per cent since the same time last year, with a third of people whose debts have increased of the view that the rising costs of living have been a prime cause of their added financial burdens.

On a nationwide basis there is understood to be a total of some £240 billion owed as unsecured debt by British consumers, with young adults now among those most likely to be struggling to cope with debt problems.

Inflation is currently at a two-year high of 1.8 per cent but many respondents to MoneySuperMarket’s recent polls admitted that their own spending habits were more to blame for their debt problems that the rising costs of living.

Kevin Pratt from the price comparison company behind the research has urged anyone finding it tough to cope with their unsecured debts to take simple steps towards resolving their issues.

“For example, it’s important to shop around to make sure you’re paying the lowest interest rate you can,” he said.

“It’s also worth consolidating multiple expensive debts onto a low-interest personal loan. Rates are the lowest they’ve been in years so, if you’re struggling to pay off unsecured debt, this might be an attractive option.”

Pratt added that the key to resolving debt woes is to “take a proactive approach” and to “see if you can reduce the interest you pay and make inroads into what you owe”.

“With the UK facing an uncertain economic future, households should be taking whatever steps they can to get their finances into the best shape possible,” he said.

If you live anywhere in Scotland and you’re struggling with debt problems then Scotland Debt Solutions can help. Contact any of our offices today to arrange a free and confidential consultation.