Brits begin to ditch the debt

Research conducted by moneysupermarket.com has found that whilst more people are paying off their non-mortgage debt than increasing it, more than half of the UK's adult population is still carrying an average of £6,956 non-mortgage debt.

More than a quarter (27 per cent) of us have taken on more debt, with eight per cent increasing debt ‘a lot' over the past 12months. Of those who are still carrying debt, worryingly 14 per cent believe debt will always be a part of their life, and they expect to live life in the red.

The good news is that 40 per cent of UK adults have reduced their outstanding borrowings, with 16 per cent claiming to be ‘in a lot less debt now compared to one year ago'.

Tim Moss, head of loans and debt at moneysupermarket.com, said: "Overall, this is positive news. It is encouraging to see that a good number of us are taking active steps to reduce the amount we owe. We have, over a long period of time, become too reliant on too much debt and correcting this was never likely to be an easy process.

"For those who have seen significant increases in their indebtedness over the last year, I would strongly encourage them to go through their household budget ruthlessly, line by line, and identify where outgoings can be cut. Those struggling to make their repayments must avoid the temptation to try to ignore the problem and should contact their lenders as well as one of the independent and free debt advice charities such as National Debtline or the Citizens Advice Bureau."

The research also found that more men have increased their debt than women, with 30 per cent admitting to an increase in their total no-mortgage debt, compared to 24 per cent of women. Women also performed marginally better in terms of paying off debt, with 41 per cent managing to cut the amount they owe, compared to 39 per cent of men.

The most prudent age group over the past 12 months has been the over 60s - with 55 per cent reducing their debt and just 19 per cent increasing it. The under 30s have struggled the most to contain their debts, with 35 per cent reporting an increase in total non mortgage debt, and just 29 per cent claiming to have reduced non mortgage debt.

Tim Moss added: "Anyone starting to worry about their financial situation shouldn't bury their head in the quick sand of debt - problems are easier to tackle when addressed early; those in their twenties and thirties should get into the habit of addressing their finances now to avoid financial difficulties later in life."