Most Brits comfortable with debts
The majority of Britons are comfortable with their levels of debt and do not believe they will need to borrow more during the next 12 months.
Despite concerns about the amount of money being spent on credit cards and store cards, most consumers have their finances under control, a survey for online credit report service MyCallcredit shows.
However, there is a small minority of people who are having trouble financially - one in 13 are struggling with their debts and feel out of their depth.
The situation is more severe for people who are out of work, with one in seven struggling financially, as are one in ten part-time workers.
Government guidelines class someone as overindebted if they are spending more than 25 per cent of their income servicing unsecured debt repayments, such as loans and credit cards.
"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.
One per cent of Britons are spending more than 50 per cent of their monthly income on servicing unsecured debts, and the figure triples to 2.9 per cent for the 45 to 54 age group.
"The industry needs to continue development more responsible lending practices, like introducing true affordability checks at the time a credit application is made, and individuals need to take stock of their overall financial position to make sure they are applying for credit responsibly," Ms Nicholson added.
On a more positive note, more than half of Britons know exactly how much they owe on credit, and one in five expects to reduce their borrowing in the next 12 months.
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