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Brits owe £7,000 in non-mortgage debt
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The economic crisis has seen more of us rely on borrowing money to make ends meet. According to new research more than half of Brits now hold non-mortgage debt, with the average level clocking up to nearly £7,000. So how do you take control of your debt? We take a look
New research from price comparison site moneysupermarket.com has revealed that 54% of Brits have an average of £7,000 non-mortgage debt, and 27% of UK adults have taken on more debt over the past 12 months.
Worryingly, 8% of those who had taken on more debt had increased their borrowing “a lot”, and 14% believed that debt would always be a part of their life, and they expected to live in the red all their lives.
dealing with debt
The research found that marginally more men (30%) have increased their non-mortgage debt compared to women (24%); 41% of women reduced the amount they owe, compared to 39% of men.
Over-60s were making the biggest dent in their debt compared to under-30s, who have struggled to contain their debt, with 39% reporting an increase in non-mortgage debt and only 29% claiming to have reduced their non-mortgage debt.
Social stigma
Unsurprisingly, many people with mounting debt find it hard to discuss their financial difficulties with friends and family, according to a survey by Talkaboutdebt.co.uk, the UK’s leading independent source of free expert debt advice. The poll revealed almost half of people in serious debt were too scared to take action because of the social stigma attached to it.
One in seven people with mounting debt hadn’t spoken to anyone about it at all – with their delay often adding to their debt burden at a time when they should really be taking it in hand.
“The main concern is that while the fear factor is preventing people from talking about debt and seeking help, their debts continue to mount,” says Jessica Brown, independent consumer journalist for Talkaboutdebt.com.
But it’s not all doom and gloom: moneysupermarket.com’s research also revealed that four out of 10 people have taken steps to reduce what they owe (not including their mortgage) over the past year. Encouragingly 16% of those surveyed claimed they were “in a lot less debt now compared to a year ago”.
“Anyone starting to worry about their financial situation shouldn’t bury their head in the quicksand of debt,” advises Tim Moss, head of loans and debt at moneysupermarket.com. “Problems are easier to tackle when addressed early; those in their 20s and 30s should get into the habit of addressing their finances now to avoid financial difficulties later in life.”
Find out here how to spot if your finances are spiralling out of control and how to deal with your debt.
Published 29 July 2009
