Debt only becomes a serious problem when it hits almost £15,000
The nation is deluded about their debt problems as Brits only see themselves as having serious debt problems once they owe just under £15,000.
A damning report from mutual life and pensions company, Bright Grey, found that attitudes towards debt have ‘spiralled out of control.’ A growing number of people only consider themselves to be in a serious amount of debt once they rack up £14,416 worth of debts.
According to the Financial Safety Net Report despite the high debt threshold, this is figure is actually slightly less than previous perceptions of serious debt.
In 2010, Brits believed that dire debt problems only started at £15,590.
Middle-aged Brits with more financial responsibility have a higher debt threshold at £15,590. As a number of 35-54 year olds may have mortgages or children they could be more likely to have more debts.
The report found that those living in the West Midlands have significantly managed their debt expectations since 2010. Back then the region believed that a massive £17,118 meant you were in serious debt. Now, they have lowered this figure to just £12,360. This shift of nearly £5,000 clearly shows how cash-strapped the nation is with personal finances becoming even tighter.
Roger Edwards, proposition director at Bright Grey, said: "In the past 12 months, Britons are sitting up and taking greater notice of the wider economic environment. People are more wary about getting themselves into serious levels of personal debt, yet over £14,000 is still clearly a cause for concern.
“Attitudes are moving in the right direction but there needs to be a sizable shift. As a result, we need to keep control of our finances so we have contingency plans in place if we urgently need access to cash."
One way to manage your personal finances and take control of your cash would be by using a prepaid credit card.