Prepaid cards can ease Brits’ debt anxieties
The amount of debt paid off per person each month is a whopping £322 on average. A savvy use of certain financial products – such as prepaid or credit cards - can help clients budget and save.
The latest study from a leading comparison site has revealed that more than a quarter of British people (27%) spend more than 40% of their wages every month in paying off non-mortgage related debt.
According to figures, £322 is the average amount of debt Brits pay off every month. Considering that the average monthly income for a UK adult stands at £1,288, £322 represents 25% of their wages. Even worse, figures also reveal that 8% of Brits spent over 80% of their wages repaying debt.
Nevertheless, the amount of debt is different depending on the UK’s region and gender.
British people living in London hold the highest amount of debt in the UK with £8,478 on average, while Brits from Yorks & Humber are the ones owing less with only £5,796 debt. Interestingly enough, however, those in Yorks & Humber use 28% of their wages to repay debt, while Brits in London use only 22% of their wages.
Additionally, research shows that while men have an average amount of debt of £7,944, excluding mortgages; women owe 15% less, holding an average of £6,739 of non-mortgage related debt.
Bank products to reduce debt
"For someone with credit card debt, it is vital regular monthly payments are maintained. Setting up a direct debit helps consumers avoid missing payments and forking out significantly more than expected in interest payments and fees," said Tim Moss, head of loans and debt at MoneySupermarket.com.
Comparing prepaid cards and choosing the one that works best for your financial situation is the key to avoiding increasing your amount of debt.
One of its major benefits is that you cannot spend more than what you have, which will help your budget and financial planning in the long run.