Fourteen Million Brits Started 2020 in Debt
Almost five million Britons started the new year with debts of more than £10,000 according to a report from comparison site Money.co.uk.
According to the report a further nine million people owe between £2,000 and £10,000, meaning that almost two-thirds of the UK’s adult population went into the new year in some considerable debt. These figures – which don’t include mortgages – take into account credit card debts, personal loans, car loans and overdrafts. Residents of London where the most indebted, where borrowers owe an average of almost £20,000 each. Better news for the Scots though, where 45% of people are debt free!
The causes of debts cover everything you would expect; 21% took out loans to repay older debts; 20% for holidays; 18% to pay for Christmas; and 18% admitted that they took out loans to pay for luxury items.
The most worrying aspect of the report is the finding that 40% of borrows say that they entered into debt to pay their normal, everyday living expenses, which doesn’t give them a lot of options to get themselves out of the debt.
If you are among the millions of people struggling with their finances in the UK, please don’t hesitate in contacting our friendly advisers for some free, no obligation help and advice.
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