Brits dont care about debts

Share This:

• 

Text size: A A A

New research has uncovered the fact that many Britons do not care if they are in debt.

Market analyst Mintel found that 2.5 million UK residents have more than £10,000 in unsecured debts, but seven out of ten people were not too worried about their situation and a quarter would consider borrowing more.

Across the nation half of people, around 21 million adults, owe money on personal loans, overdrafts and credit cards, but most were found to be dealing with their finances well.

The statistics also revealed that one person in eight owes more than £10,000 and one in 20 owes more than £20,000.

Mintel senior finance analyst Paul Davies said: "While many people in debt may have the means to continue meeting their repayments, the high levels of debt and lack of worry does clearly represent a cause for concern.

"Although the research certainly shows that an impending debt crisis is not inevitable, a large minority of households are extremely vulnerable to any deterioration in the prevailing economic conditions."

He added: "While this may not currently be the most likely outcome, there is clearly the possibility that such a doomsday scenario could yet unfold."

The most common form of borrowing was found to be on credit cards, with 30 per cent of people having an outstanding balance, while six cent of people owed money on store cards.

Mr Davies said: "This high incidence of credit card and store card debt partly reflects the ease with which consumers can borrow through these accounts.

"These products have acted to blur the distinction between spending and borrowing and have helped to create a spend now, pay later culture.

"The credit card industrys promotion of zero per cent purchases and balance transfers for fixed time periods will also clearly have encouraged some consumers to borrow money via this route."


© Adfero Ltd

Important Notice
This guide is intended for general information only and is not intended as, and does not constitute, any form of advice, recommendation or endorsement by us of any particular product(s) or services and you should rely on your own further research and professional advice in relation to your specific requirements and circumstances before purchasing any products or services. Use of this guide is subject to the Terms of Use of the KnowYourMoney site.