Average personal debt now stands at £8,400 excluding mortgages, however people don’t start worrying until their debt rises above £9,700.
The average amount of debt accrued by UK consumers has risen to £8,400, research by moneysupermarket.com has revealed. Mortgage related debts are excluded from these findings.
It appears, however, that people only start to worry about their debts when they owe more than £9,700, although women show more concern about their debts than men.
“Recent changes in taxation limits, removal of certain benefits and the soaring cost of living has seen many the nation’s personal finances squeezed more than ever, and many people will be worrying about their financial situation.”, says Tim Moss, head of loans and debt at moneysupermarket.com.
When personal debts rise to over £19,000, people are more likely to seek paid advice about the personal finance problems, although nearly half of Brits say they would never pay for debt advice.
Those with financial worries should also turn to friends and family for debt advice, the Consumer Credit Counselling Service recommends. The CCCS is a leading debt charity that provides free debt help.
If debt is becoming a concern, help is at hand from a variety of free and paid for resources, as Tim Moss explains:
“Borrowers may feel like they will be forever in the red, but this doesn’t need to be the case. It is always worth speaking directly to your creditors to try and come up with a suitable repayment plan, but for those who can no longer control and service their debts, a debt management company could be an alternative option”.