Average Personal Debt Hits £8,400
The average UK personal debt is £8,400 new figures reveal, but people do not start worrying until it reaches in excess of £9,700.
According to Moneysupermarket, individuals on average owe £8,431 excluding mortgages, and men have a 24 percent higher rate of personal debt than women as they owe on average £9,403 compared to £7,593.
Only when borrowers’ debt tips £19,478 do they seek paid debt advice, with the North East show the highest tipping point of £14,269 when they typically start worrying about their personal debt. This region also would only seek paid debt advice when it hit £23,677.
Nearly half of Brits admitted they would never pay for debt advice, claiming they would seek free advice instead.
“Recent changes in taxation limits, removal of certain benefits and the soaring cost of living has seen many the nation’s personal finance squeezed more than ever,” commented Tim Moss, Moneysupermarket, head of loans and debt.
“There is no need to suffer in silence and there are many options to make steps in reducing personal debt, before it escalates out of control.”
Many in debt will be paying over the odds as one in ten can only afford the minimum repayments, while seven percent admit they may always been in debt.
The High Cost of Living
The headline rate of inflation dropped to 4 percent in March, falling in all age groups but still a heavy burden on the nation’s budgets.
The 50-64 year old age group experiences the highest rate of inflation at 5.1 percent, 28 percent above the headline rate.
Utility price inflation has been a big pressure on inflation, hurting the elderly age groups in particular, the figures from Alliance Trust Research Centre show.
The under 30 age group saw inflation fall from 4.7 percent to 4.6 percent, experiencing the lowest rate of inflation – albeit, still above the headline rate.