Are you one of the many people in Briton who just hands over your card and hopes for the best? Then you’re not alone as the average Briton is £8,431 in debt
As the saying goes: what you don’t know can’t hurt you. But when it comes to your finances, perhaps you should make an exception as a new survey suggests that Britons run up £10,000 of debt before they begin to worry.
The average person now owes £8,431 on credit cards, loans and overdrafts, although they say they would not become concerned about their borrowings until the figure balloons to £9,800, according to moneysupermarket.com. Even more worryingly, most people wait until their debts double to £19,478 before seeking advice.
‘Recent changes in taxation limits, removal of certain benefits and the soaring cost of living has seen many people’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.
‘Making ends meet is hard enough without juggling repayments on top,’ he says. One in ten people with unsecured debt said they could only afford to make minimum repayment on what they owed and seven per cent say they think debt will always be a burden in their life.
Despite our incurable shopping habits, men tip the scales when it comes to racking up debt, owing an average of £9,043 compared to women who had an average debt of £7,593.
Men also wait longer before they feel the situation is out of control, saying they begin to feel concerned when their borrowings exceed £12,000, while women start to panic when the bank balance reaches -£7,500.
‘There is no need to suffer in silence,’ says Tim. ‘There are many options to take steps in reducing personal debt before it escalates out of control.’
For more information on how to pull yourself out of the red visit www.debtadvisorycentre.co.uk