UK borrowers “don’t care” about debts

Most borrowers in the UK do not care about their debt a new survey has shown.

Around 2.5 million people in the UK have more than £10,000 in unsecured lending. Seven out of every ten of these simply do not care about their debt, says market analysts Mintel.

More worryingly, a quarter told researchers that they would happily borrow more.

Overall, 21 million people, or almost half the adult population, owe money on credit cards, overdrafts or personal loans.

More than one person in every eight owes more than £10,000 and one in twenty owes more than £20,000.

“While many people in debt may have the means to continue meeting their repayments, the high levels of debt and lack of worry does clearly represent a cause for concern,” said Paul Davies, senior finance analyst at Mintel.

“Although the research certainly shows that an impending debt crisis is not inevitable, a large minority of households are extremely vulnerable to any deterioration in the prevailing economic conditions.

“While this may not currently be the most likely outcome, there is clearly the possibility that such a ‘doomsday’ scenario could yet unfold,” he added.

The country is not entirely immune to worry about debt, with five per cent saying they are “very worried”. Almost 90 per cent thought that their finances are under control, however.

Aggressively marketed best rate credit cards and balance transfer juggling is believed to have fuelled much of the current debt mountain.

© Adfero Ltd

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