 Print this page |
UK debt overtakes annual earnings
|
A worrying report has revealed the extent of debt in the UK, with figures suggesting that people in some areas owe a staggering 169% of their annual earnings. We reveal the most indebted areas in the UK
As the recession continues it comes as no surprise that more and more people are relying on credit to make ends meet. However, figures released today by comparison website Confused.com highlights the extent of debt in the UK and identifies the worst area for “debt dependency” – where residents owe significantly more than they earn.
The study provides a snapshot of average debt per person compared with their average salary by areas, and reveals that on average for every £1 earned in each year’s salary in the UK a person will owe £1.02 in debt. Figures also reveal average outstanding balances on credit cards, mortgages, loans and hire purchase from area to area.
dealing with debt
Debt demons
Surprisingly, the affluent suburb of Kingston upon Thames was named as the nation’s most indebted, with the average resident owing 169% of their yearly earnings. Watford, Horsham, Bromley and Bromsgrove made up the Top 5 debt-ridden areas – with average debt per resident coming in at over 156% of their earnings.
Residents in Manchester fare much better when it comes to looking after their finances, owing an average of 51% of their annual salary.
The research also looked at credit card debt and revealed that people living in leafy Camberley in Surrey are happy to splash out using plastic. The average credit card debt in the area came in at just over £2,000, and was closely followed by Bromley, Bracknell, St Albans and Bishop’s Stortford with average credit card debts of more than £1,800.
Average outstanding loan and hire purchase payments for residents from Chester-le-street in Durham came in at a whopping £3,340, while areas with the largest mortgage commitments per person included Richmond (£49,562.82), Putney (£43,859.56) and Kingston-upon-Thames (£42,743.47).
Gemma Stanbury, head of savings, loans and debt at Confused.com commented on the research, saying: “This study provides a significant insight in the lending responsibilities and borrowing commitments of people in the UK.
“As we face continued uncertainty and increased financial pressures, it is good advice for all to become more aware of what they are spending and on what. Where spending and debt can be reduced, efforts should be made to ensure it is done.”
Is your debt spiralling out of control? Find out how to detect the warning signs of dangerous debt and what you can do to deal with it now.
Last updated 27 May 2009
