British Adults Nearly GBP6,000 In The Red

Tue, 06 Apr 2010

New research has revealed that each UK adult owes an average of nearly £6,000 in non-mortgage related debt .

A survey carried out by finance website lovemoney.com found that the average Brit owes some £3,077 in loan repayments, has £1,747 outstanding on credit cards, bank overdrafts of £518 and has £646 worth of other finance deals .

Nearly half of those surveyed admitted that their debt problems were caused by spending more than what they earned, while 12 per cent of said their financial difficulties were caused by loss of employment .

A third said they had borrowed money to pay for something specific, such as a new car, while one in four said borrowing was needed to pay for essentials such as food.

Half of the adults questioned said they expected their debt woes to last for at least four years as they could only afford to repay the minimum amount each month.

Commenting on the results, a spokesman for lovemoney.com said: "It was way too easy to borrow during the economic boom and it'll be a long time before we've all nursed our finances back to good health."

"If you've got big debts, it's crucial that you should start budgeting . Find out exactly how much money you're spending every day and then you may be able to spot areas where you can save ."

"The worst thing to do is put your head in the sand," he added. "Tell your lender that you're struggling and you may get a more sympathetic response than you expect."

"It's also worth trying to increase your income if you can. Could you possibly get a second job at the weekend, or maybe rent out a spare room in your home ?"
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