Brits ‘very concerned’ about debts

More than 2.48 million adults (7%) are very concerned about their ability to keep on top of their debts as recent interest rate rises start to hit home, new research from MoneyExpert.com reveals.

And one in four adults with debts (25%) have increased the amount they owe in the past three months as they struggle to juggle their borrowing burden in response to rate rises. Around seven per cent have increased their borrowing by 20 per cent or more, the independent financial comparison website’s figures show.

MoneyExpert.com has launched a Debt Index which will measure how well – or badly - people in debt are coping with their borrowing and monitor whether levels of indebtedness are rising – or falling. The index will run every three months.

The first index launched today shows seven per cent of adults – or 2.48 million people – are “very concerned” about their ability to manage debt while another 24 per cent are concerned. However 40 per cent are either unconcerned or very unconcerned.

And while 25 per cent have increased the amount of personal debt – including mortgages, loans and credit cards – over the past three months 65 per cent have either not increased personal debts or cut the amounts they owe.

Sean Gardner, Chief Executive of MoneyExpert.com, said: “With more than 2.48 million very concerned about keeping on top of their debts it is clear that there is a serious crisis brewing.

“Anyone who is very concerned about their ability to keep on top of their debts is heading for serious trouble if they do not take action now.

“The financial squeeze is on after the Bank of England boosting interest rates five times in a year and people need to adjust to the idea that borrowing money is going to be more expensive for the foreseeable future.

“There are however plenty of ways for people to get their debts under control from consolidating their borrowing to using the equity in their home through a secured loan. It is important that people act and do not bury their heads in the sand.”

MoneyExpert.com research shows 23 per cent of people are debt-free and around 40 per cent of people are unconcerned or very unconcerned about their ability to manage their debts.

Around 10 per cent of 45 to 54-year-olds are very concerned about their ability to manage their debts compared to the national average of seven per cent. People in the North of England are more likely to be very concerned about debt management.