Recession-hit Brits avoid debt
Almost three quarters of Brits are avoiding further debt since the recession hit, according to a survey.
A study from Fairinvestment.co.uk conducted last August found the average debt on credit and store cards totalled more than £2,000, while the average loan, not including mortgages, was more than £3,800.
But new research shows 74 per cent of Brits have refrained from borrowing more money.
Of those who have borrowed more, seven per cent took out an additional credit card, six per cent borrowed from friends and family, five per cent used a personal loan and three per cent turned to short-term credit such as pay day loans.
The survey also found that if people had extra cash at the end of each month, 26 per cent would use it to pay off their existing debts.
Fairinvestment chartered financial planner Sharon Bratley said: "The fact that the majority of people are steering clear of getting into further debt is encouraging, and a sign of the changing economic climate.
"Not long ago, people thought nothing of getting another loan or credit card, as credit was easier to secure, but as lenders tighten their criteria it seems people are taking note."
But Fairinvestment also found the recession forced nine per cent of respondents into debt for the first time.
The study showed five per cent have had to get their first personal loan, while four per cent have had to take out their first credit card.
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- unsecured loan
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