A third of UK consumers have claimed their personal debt has risen within the last 12 months, with many believing they will always have arrears hangin…
A third of UK consumers have claimed their personal debt has risen within the last 12 months, with many believing they will always have arrears hanging over their heads.
This is according to a new study from Moneysupermarket.com, which revealed that ten per cent of people have said the amount they owe has jumped significantly.
Furthermore, the average amount of personal debt an individual is under – excluding mortgages – is currently £8,430, which would take the average credit card owner 24 years and four months to pay off with an average 18.43 per cent rate and £7,488 in interest added on.
The findings also revealed that those aged between 18 and 34 were the worst hit, with 37 per cent of this age bracket claiming their debts have increased in the last 12 months, which is 35 per cent more than those in their parents’ bracket age 55 and over.
Worryingly, seven per cent of respondents believe that owing money would be something they will have to live with for the duration of their lives.
Tim Moss, head of loans and debt at Moneysupermarket.com said: “There is no need for consumers to bury their heads in the sand when it comes to their finances and by taking steps to reduce personal debt, many of these problems can be nipped in the bud early on, before they escalate out of control.”
This follows a study by Aviva, which found that debt repayments now account for ten per cent of the average UK family’s income, rising from just eight per cent in January of this year.
By Amy White