Figures released by a well known comparison website have highlighted the debt problems faced by UK homeowners. As the current financial climate worsens, the research has shown that consumers now owe more than they actually earn.
Debt advice specialists are concerned that there could be significant consequences ahead for people that have become overstretched. They recommend that anybody with serious money worries should seek professional debt help, or IVA advice, before the situation becomes impossible.
The picture varies considerably depending on which part of the country you come from, with residents in the worst areas owing considerably more than they take home.
Kingston-upon-Thames is the UK’s most indebted town, where the average resident owes nearly 170% of their total yearly income. At the other end of the scale sits Manchester, where the figure is a more manageable 51%. There is also a geographical variance when it comes to racking up credit card debt, with Camberley residents the happiest to flash the plastic. North of the border, in Dumfries, the average resident owes around two-thirds less on credit cards, compared to people living in the Surrey town.
The main contributory factor to the high debt levels are mortgage balances, however credit card debt, personal loans, store cards and hire purchase agreements account for a large part of the total.
In view of the increase in borrowing, there has also been a jump in the number of consumers signing up for a Debt Management Plan, or an IVA if the debts exceed a certain level.
If you are in deep financial trouble, it’s best to act now, and take the necessary steps required in order to get out of debt.
