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Brits in the dark over their credit card and payday loan debt

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Written by: Paloma Kubiak
05/10/2016
A ‘startling’ number of Brits have no idea about how much debt they have to repay on credit card, to their bank or to a payday lender.

As 37% of the nation admits to being in debt, research shows that 28% are out of touch with their finances as they’re unable to say how much they owe.

The study by YouGov for VoucherCodes.co.uk found that a third (33%) of Brits have borrowed money this year, with 12% borrowing from family members and 11% taking out a credit card.

The average amount of debt stands at £446 and 38% of those who owe money said they’re concerned about the total amount they have to pay back.

But it’s not just debt that people are in the dark about as the research found that more than a quarter of those with a current account have no idea how much is in there.

And there’s also a lack of awareness when it comes to monthly outgoings as over a quarter of Brits who owe money on their bills are unable to confirm what they owe. Nearly half – 47% – are not clear what they owe on their mortgage.

But despite not knowing how much they owe, 32% said they’re not concerned about this lack of knowledge.

Brits aged between 18-24 have the loosest grip on their finances and regionally, Londoners are least likely to know their numbers, while those from the East Midlands are savviest.

Claire Davenport, managing director at VoucherCodes.co.uk, said: “Having an awareness of the money you have at your disposal, as well as your monthly outgoings is key to managing your finances and preventing yourself getting in unnecessary debt.”

Davenport said there are many apps out there for managing your finances such as banking apps and budgeting tools which can help you make savings on all sorts of items when you’re out and about shopping.

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