Majority of consumers comfortable with debt level

MyCallcredit says its survey reveals that 90 per cent of Britons are happy with debt levels but only a fifth plan to reduce borrowing and do not plan for their position to worsen within the year.

MyCallcredit director Alison Nicholson commented: “Debt only becomes a problem for people when they can’t manage their repayments and the vast majority can, indeed, three times as many people expect to reduce their debt burden over the next year than expect it to increase, which is good news.”

However, she warned that some people expect their debt situation to get worse, particularly among younger people and the unemployed.

Ms Nicholson added that a significant amount of people were indebted, spending more than a quarter of their income servicing debt.

In order to reduce the amount of people having their lives ruined by large debt, Ms Nicholson called on the lending industry to introduce affordability checks and other new measures.