Some Brits spend huge chunk of income on debt repayments

There are many people across the UK who have found themselves in increasing levels of debt over recent months, with the difficult financial climate making it more and more difficult for consumers to manage without turning to some form of credit. However, consumers are paying the price for their debts with a recent report indicating that around a quarter of Brits are paying out a massive 40 percent of their income on non-mortgage related debts each month.

With the cost of living soaring and energy prices having been hiked most consumers can ill afford to lose such a large chunk of their income each month on servicing debts. However, the average adults Brit is said to be paying out around £322 per month, which comes to 25 percent of the average income, which stands at £1288.

Whilst the report was being compiled debts such as credit cards, overdrafts and personal loans were looked at. The average amount each Brit owes in personal debt such as these is around £7388 although the average in London is the highest, where personal debt stands at an average £8478 per person. However, Londoners pay out a lower percentage of their income of servicing their debts, paying out around 22 percent of their monthly income.

One industry official stated: ‘With the cost of living continuing to rise, consumers are feeling the squeeze on their wallets more than ever. It’s therefore worrying to see such a high number of people needing to use so much of their income just to service existing debt. However, making the most of every pound really does count when it comes to the end of the month, and it’s vital that those needing to repay debt are doing so using the best method.’