Debt Levels Rising For A Third Of Brits

Thu, 26 May 2011

One in three people in the UK have seen their level of unsecured personal debt increase over the last twelve months, according to new research.

A survey carried out by price comparison site moneysupermarket.com found that the average Briton currently owes an average of £8,430, excluding mortgage debt .

When quizzed on their approach to repaying debt, one in seven people said they only make the minimum repayment each month. Of those, 10 per cent said they do so as that is all they afford to repay, while a further 4 per cent said they choose to pay the minimum amount to free up disposable income.

Commenting on the findings, Tim Moss, head of loans and debt at moneysupermarket.com, said: "The nation has been left reeling with inflation now at 4.5%, the highest levels since 2008, and the crippling effects of soaring living costs."

"It therefore comes as no surprise that people have seen a rise in the amount they currently owe, compared to 2010."

The survey also showed that those aged 18-34 were the hardest hit by debt increases, with 37 per cent saying their debt had increased over the past year, compared to 24 per cent of those aged 55 and over.

Moss continued: "The younger generation has been hardest hit by rising levels of debt and it is important this group deal with this problem early on, rather than admit defeat. It's also hugely worrying that 7 per cent of people are resigned to the fact that debt will always be a burden in their life."

"There is no need for consumers to bury their heads in the sand when it comes to their finances and by taking steps to reduce personal debt, many of these problems can be nipped in the bud early on, before they escalate out of control."
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