Debt Britain: Now debts greater than salary

Wednesday, 27 May 2009 07:30

Brits now owe more on average than their annual salary, according to new research.

For every £1 earned, people are £1.02 in debt on credit cards, loans and mortgages, claims a study by Confused.com.

Across the nation, the highest debt to income levels were found in Kingston-Upon-Thames- where average debts hit 169 per cent of annual salaries.

Horsham, Watford, Bromley and Bromsgrove all recorded debts levels of over 150 per cent of income

This compares with Manchester where debt levels were at 51 per cent of income.

Gemma Stanbury, head of savings and loans at Confused, said: "As we face continued uncertainty and increased financial pressures, it is good advice for all to become more aware of what they are spending and on what.

"Where spend and debt can be reduced, efforts should be made to ensure it is done."

Kingston-Upon-Thames hit the list due to the high levels of mortgage debt - with high house prices for the leafy Thames-side suburb.

Along the Thames and into Surrey, the levels of mortgage debt per head were found to be the highest.

In Richmond, Putney, Kingston-Upon-Thames, Wandsworth and Chiswick mortgage debts per person stood between £49,562 and £40,516.

Credit card debts were highest in Camberley at £2001.62 per person - while Bramley, Bracknell, St Albans and Bishops Stortford all saw people owing over £1,850.

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