UK comfortable about borrowing

An overwhelming majority of people in the UK are completely comfortable with debt and many do not expect that they will have to borrow over the next year, says a survey.

Despite some national anxiety about debt in the abstract, almost 90 per cent of people in the UK say that they are pretty happy about their own level of borrowing.

A small minority ñ 13 per cent ñ told the MyCallcredit survey that they feel out of their depth financially and are struggling to cope, however.

Government guidelines define people as over-indebted if they are spending 25 per cent or more of their income on servicing unsecured loans.

“Thankfully our survey shows more than eight out of ten people are spending 20 per cent or less of their income servicing these debts, but this doesn’t mean we should ignore the minority,” said Alison Nicholson, MyCallcredit director.

Problems are more acute among those out of work with one in seven struggling with their finances. One in ten part-time employees are also in difficulties.

One per cent of the UK spends more than half of their income on servicing unsecured best rate borrowing, rising to 2.9 per cent of those aged between 45 and 54.

© Adfero Ltd

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