THE PROPORTION of adults who are over-indebted in London is higher than in the rest of the UK, research shows.
The Financial Conduct Authority’s (FCA) Financial Lives survey found 17 per cent of Londoners are over-indebted, compared with the UK average of 15 per cent.
Overall, the average unsecured debt is £3,600 among people living in urban areas, compared with £2,510 in rural locations.
Read more: UK household debt close to 1980s peak
The survey of 13,000 adults also found a greater proportion of people use consumer credit in urban areas at 77 per cent, compared with 68 per cent in rural regions.
In total, 3.1m adults have high-cost loans, with the highest concentration in Scotland at 0.4m and Yorkshire and the Humber at 0.3m.
A further 4.1m UK adults are defined as ‘in difficulty’ because they have missed domestic bills or credit commitments in three or more of the last six months.
Read more: UK consumers concerned over debt levels
Just over one in 10 UK adults have no savings, but there is a clear North-South divide with 17 per cent of people in the North West and 16 per cent in the North East have no savings, compared to nine per cent in the South East and 10 per cent in the South West.
In total, 78 per cent of UK adults have a credit or loan product, rising to 83 per cent in the South East.
Read more: Household debt rises by seven per cent
“This survey shows just how different the experience of financial services is for consumers across the country,” Andrew Bailey, chief executive of the FCA, said.
“That’s important for us, as we shape financial services policy. But it is also important for firms, as they decide how best to serve their customers.”