THE average amount of debt that people consider to be unmanageable is £8,854, a new survey has revealed.
According to a poll by credit firm TDX Group, more than one fifth (21 per cent) of Brits believe any amount of personal debt to be unmanageable.
Meanwhile, 22 per cent of people feel most financially under pressure in January, while 19 per cent said that December was their toughest month.
“Year after year, spending pressures over the seasonal period push many to exceed their financial limits,” said Richard Haymes, head of financial difficulties at TDX Group, an Equifax company.
Record high levels of personal debt in 2018, combined with so many people saying they find debt unmanageable, make this particularly concerning.”
Credit cards are the type of debt people are most concerned about, with 20 per cent citing them as their main financial worry. 11 per cent of people said that utility bill debt caused them the most concern, while nine per cent were most worried about their mortgage repayments.
The TDX Group survey found that women were less inclined than men to take on a lot of personal debt. When asked how much they would feel comfortable borrowing, men stated an average of £9,996 would be manageable, but this figure fell to £7,661 among women.
People in the South East of the United Kingdom believe that they can handle the largest amount of personal debt, with £10,662 deemed to be the point at which debt would become unmanageable.
However, Haymes added that despite widespread worry around post-Christmas debt, some positive trends are developing.
He said: “The increasing regulatory focus on expanding awareness and access to debt advice, such as the government consultations on Statutory Debt Repayment Plans and breathing space for people in debt, should help break down the social stigma around financial difficulties and enable more people to access the help they need.
“This will play a key role in addressing society’s debt problems in the year ahead.”
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