Some Brits will never be free of debt

British people have admitted in a recent survey that they don’t expect to be free from debt in their lifetime, as the number of those struggling with problem debts continues to rise.

Top finance website has revealed that only one in seven people manage to make the minimum debt repayment every month. When asked about their approach to handling debt, a third of respondents said their personal debt had risen by a significant amount over the last year – not including mortgages.

Tim Moss, spoke of increased inflation and the rising cost of living as reasons for the spiralling debt problems in the country, he also urged consumers to consider a plan for the future before taking on substantial debt; ‘Whether using a secured loan or a credit card, borrowers must have a clear plan of how they are going to repay their debt and stick to it, or they’ll soon find themselves falling into the debt trap.’

Four percent of those asked admitted they only paid the minimum amount on debt repayments every month, as a way of freeing up some disposable income as they feel the pinch from inflation rates rising. The average debt for someone in the UK, not including mortgages, is £8,430. This means that, if they only pay back the minimum amount would take over twenty four years to pay the full debt off. Including a credit card rate of 18.43%, they would be paying back £7,488 in interest alone, much more than they borrowed to begin with.

It seems youngsters are currently the group with the biggest debt increases, a third of 18 to 24 year olds said their debt had grown significantly over the last year. Conversely, the over fifty-fives had less of a problem with increasing debt than their younger counterparts, whilst many did see their debts rise, the number were considerably less, at 35% fewer than the younger generation.

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