Debt not a problem for most
Most people in the UK are happy with their debts, and one in five expect to reduce their borrowing over the next year, new research has revealed.
A telephone survey from MyCallcredit found that nine out of ten people in the UK are comfortable with their debts, and that most people did not see their position worsening over the year.
However, young people were the least optimistic about their financial position, part-time workers were the most likely to be out of their depth and there was a significant minority of Britons who were overindebted.
MyCallcredit director Alison Nicholson said: “Debt only becomes a problem for people when they can’t manage their repayments and the vast majority can, indeed, three times as many people expect to reduce their debt burden over the next year than expect it to increase, which is good news.”
Yet she claimed measures should still be taken to help people who were over indebted: “The industry needs to continue developing 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.”