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Debt perceptions spiralling out of control

Debt perceptions spiralling out of control

Category: Debt

Updated: 08/03/2011
First Published: 14/01/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The level of debt at which Britons consider themselves to be in serious financial difficulty has soared above £15,000, new research has revealed.

The troubles in the economy have been blamed for having an adverse affect on Britons' attitudes to their personal finances by Scottish Provident.

With people now only seeing themselves as being in serious financial difficulty once they are in £15,837 of debt, the insurer believes the notion of what is a manageable level of personal debt has spiralled out of control.

Of even greater concern is that the so-called 'debt threshold' increases to £16,646 for 18-34 year olds. The threshold of the over 55s is slightly lower at £14,424.

The insurer said the findings made it clear that the nation as a whole is worryingly immune to the financial reality of being so heavily in debt.

"With the UK's national debt figure dominating the headlines, it appears this could have had an adverse affect on how the nation view their own personal finances," said Susan Barclay, head of marketing at Scottish Provident.

"To not believe they would be in serious financial difficulty before they reached debt levels of over £15,837 is a worry, and it underlines how debt has become too readily accepted in the UK.

"What starts out as a small level of personal debt can quickly spiral out of control, so Britons should ensure they keep on top of their personal spending."

If you think you are overspending and have credit card debts, or any other debts, you are struggling to repay, then help is at hand.

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