Britons Wait Until Debts Reach GBP10k Before Worrying

Fri, 15 Apr 2011

Britons do not begin worrying about their personal debt until it reaches nearly £10,000, new alarming research has found.

A survey of 2,000 adults carried out by discovered that the average Brit owes £8,431 on credit cards, loans and overdrafts ( unsecured debt ) yet only becomes concerned when their level of debt hits £9,767.

Even more worryingly, most wait until their debts double to £19,478 before seeking professional advice.

The so-called ‘worry tipping point’ for personal debt is higher for men than women at £12,000 compared to £7,500, while those living in the North East of England have the highest worry tipping point at £14,200.

The research also found that just 10 per cent of British adults can only afford to make the minimum repayments on their debt, while 7 per cent feel that debt will always be a burden in their lives.

Commenting on the findings, Tim Moss, head of loans at moneysupermarket.com, said: "Debt can be hard to shift, and a lump some of nearly £20,000 can be a daunting amount to pay back. Borrowers may feel like they will be forever in the red."

He added: "Recent changes in taxation limits, removal of certain benefits and the soaring cost of living has seen many of the nation’s personal finances squeezed more than ever, and many people will be worrying about their financial situation. Making ends meet is hard enough without juggling debt repayments on top."
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