The typical Brit has personal debt levels of around £8,400, excluding any mortgage related loans, a new survey has shown.
The poll conducted by moneysupermarket has shown that while the typical level of debt is £8,400, most people do not worry about how much they owe until the debt exceeds £9,700. However, the research did highlight a difference in the genders, with women worrying more about their debts than men.
Head of loans and debt at moneysupermarket, Tim Moss, described the results, saying, "Recent changes in taxation limits, removal of certain benefits and the soaring cost of living has seen many of the nation’s personal finances squeezed more than ever and many people will be worrying about their financial situation." Mr Moss went on to say, "Borrowers may feel like they will be forever in the red but this doesn’t need to be the case. It is always worth speaking directly to your creditors to try and come up with a suitable repayment plan but for those who can no longer control and service their debts, a debt management company could be an alternative option."
The study showed that most people allow their debts to reach a level of at least £19,000 before they start to seek advice about their financial problems. This goes against the advice of many experts, who recommend getting help before problems start to spiral uncontrollably. Nearly half of Brits say they would never pay for debt advice or for someone else to manage their debts.
The Consumer Credit Counselling Service (CCCS), is a free resource which has seen a significant increase in the number of Brits coming to them for advice and guidance. However, the CCCS says that many people could be helped out of their difficulties by simply talking to their family and friends, as sometimes a bit of sensible advice from people that care is sufficient to sort the problems out.