40% Of People Worried About Their Level Of Debt

Nearly 40% of people are worried about their debt and a third of people believe that their financial situation will worsen over the next six months, according to a survey by R3, the insolvency trade body.

The number of people who believe their financial situation will worsen over the next 6 months has risen 7% in the last quarter.

R3 President, Steven Law commented: “Since we last carried out the survey, the government has issued the Comprehensive Spending Review that announced job cuts and welfare cuts, so it is unsurprising that fewer people are feeling optimistic about their financial outlook.

In many cases of personal insolvency the contributory factor is a sudden change in circumstance, such as losing a source of income, which makes repaying outstanding debts difficult. With personal debt hitting record highs and job cuts looming, many people will be feeling vulnerable.”

In the West Midlands, people are most likely to worry about their level of debt, with half of those surveyed saying they are worried. In contrast, in London,  one in four are concerned.

Nearly 50% of those who are worried about their debts say that it’s concern over credit card debts that really dominates

Over a quarter are concerned about how far they are into their overdraft and some 23% are concerned about their mortgage repayments

Steven Law continued: “I see many people who are concerned about their credit card debts as, worryingly, they rely on them for day-to-day purchases. Unfortunately, I fear that the number of people worrying about their levels of credit card debt is set to grow.”

Debt problems do not tend to go away without proactive action being taken. There are a range of debt solutions available such as taking out an IVA, pursuing a debt management plan, or as a last resort, filing for bankruptcy.

Critically, if you are struggling with debt then seeking professional help sooner rather than later is well worth considering.