UK debt outweighs earnings
News from confused.com has revealed the levels of debt within UK homes, with people owing more than they earn within a year. Their research has shown that on average, for each £1.00 earned in individuals annual salaries, they will own £1.02 in debts. Results from Kingston-Upon-Thames revealed that those surveyed actually owed 169% of their annual income. Those living in Manchester owed 51% in debt for each pound earned.
In terms of credit card spending, those living in Surrey’s Camberley area had over £2,000 owing on credit cards. Those living in Dumfries have less than £750 owing on their credit cards.
With regard to mortgage commitments, those living in Richmond have the highest average amount owing per person at £49,562.82 per person. They were followed closely by individuals surveyed who lived in Putney, who owed an average of £43,859.56 per person.
When it comes to hire purchase and loans, Confused.com’s Top 5 Outstanding balances revealed that the highest average outstanding balance owed was by those living in Chester-le-Street, at £3470.79. Individuals surveyed in Milton Keynes owed an average of £2,974.37 and those in Motherwell had an average of “2932.42 owing.
Gemma Stanbury, head of savings, loans and debt at Confused.com said: ‘This study provides a significant insight into the lending responsibilities and borrowing commitments of people in the UK. As we face continued uncertainty and increased financial pressures, it is good advice for all to become more aware of what they are spending and on what. Where spend and debt can be reduced, efforts should be made to ensure it is done.
‘Homeowners who have several credit cards, hire purchase agreements and personal unsecured loans, could consider consolidating these with a secured loan. One of many options to consolidate debt, a secured loan could result in one monthly repayment rather than several repayments. It should however be remembered when taking out a secured loan to consolidate debt, that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
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