One in four Brits spends more than 40% of their wages on repayment of non-mortgage debt, the latest research has found.
According to a price comparison website, the average amount of debt paid off per person per month is £322.
Cash strapped Brits already struggling to cope with the rising cost of living and increased in winter fuel bills are also now paying off debt.
Britain’s skyrocketing personal debt is clear, with debt repayments swallowing up monthly incomes.
The average monthly income for a UK adult is £1,288 and if Brits are paying £322 out of that, that’s a staggering 25% of their monthly wage.
Shockingly, 8% of people said they spent 80% of their monthly income on debt repayment.
Women owe less money than men with only £6,739 in debt compared to £7,944 for their male counterpart.
Londoners have the highest amount of personal debt in the UK owing on average of £8,478 compared to those living in Yorks & Humber who owe an average of £5,796.
However, Londoners are less likely to pay off their debt. The research found that those living in the capital would use 22% of their monthly wage for debt repayment compared to those in the Yorks & Humber who will commit to 28% of their wage to paying off debt.
Single men and women are most likely to accumulate debt. Women aged between 40 and 59 are said to be those currently struggling with debt the most, according to the Consumer Credit Counselling Service.
Debt management solutions
Whilst it’s good news that Brits are paying off their debt, there could be more effective and efficient ways to manage debt problems.
By adopting debt consolidation to merge debts into easy repayments over a set period of time you could ease the repayment process without having to use up 80% of your monthly income!
Seek debt advice about effect debt solutions.
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