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High earners in most non-mortgage debt

Tahmina Mannan
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Tahmina Mannan

The UK’s higher earners are the most indebted, a new report has found.

Aside from their mortgage, people who earn between £40,000 and £70,000 typically owe £3,000, £577 more than the average Brit.

High earners are also more tolerant of debt levels and are happy to accumulate debts of over £5,000 before they begin to worry. In contrast, those earning below £40,000 grow nervous when their debt nears the £4,000 mark.

The point at which higher earners would seek professional help is also far higher at £7,067, compared to £5,213 for the average Brit.

The study by uSwitch.com also found that men generally borrow the most, despite typically earning more than their female counterparts. They owed £769 more than women in the last year, but tended to be less worried over their debt levels in general.

Michael Ossei, personal finance expert at uSwitch.com, said: “People are running out of ways to fund their ever-increasing household bills, and with salaries failing to deliver, many are being forced to turn to debt just to stay afloat. But it’s easy to borrow just a bit too much and then find yourself in over your head.

The report also found that almost one in four borrowers will take at least three years to pay off their debt, while 7% do not think they will ever be debt-free