Debt warning: Brits adding a TENNER a day to their financial burden
GETTY Brits are adding £10 per day to their growing debt burden
Detailed analysis showed that the average person’s debt grew by £560 in the first quarter of 2017. But a breakdown of the figures showed single parents with young children plunged £930 into the red and lone parents with grown-up off spring took on £940 worth of debt – or £10 per day on average. Experts believe the cost of helping university-aged children with tuition fees could be behind the highest figures.
The debts are piling up not because people are extravagant, the survey by online investors True Potential found. Around 15 per cent of people take on more debt ‘just to get by’ and pay for household necessities, rising to 20 per cent of single parents. Other reasons for UK households taking on debt included changing career, taking on a new job and funding parental leave. Couples with no dependents are statistically the least exposed to debt, taking on a below-average-amount of £350 debt in the quarter, with only 11 per cent using it to get by.
GETTY Experts believe the cost of helping university-aged children with tuition fees could be a factor
The average debt is £1,797, with men (£1,960) seemingly less concerned about getting into debt than women (£1,645). Adults under 25 had the lowest borrowings at £748, compared to the highest, among 45 to 54-year-olds, at £2,299. Regionally, North East of England households owe the most at £2,664 and also took on the most debt in the period, with an average of £956. The lowest was in the East of England, at £411, despite people in the region not thinking they have a problem until they owe £2,352.
GETTY Taking on a new job was one cause of debt
The report’s findings highlights the need for greater financial education amid a looming debt crisis, according to True Potential’s David Harrison. He said: “Personal debt is the elephant in the room. Consumer confidence and spending have been creeping up but there is growing concern that it is built on quicksand in the shape of rising individual debts. “Underpinning this is easy access to debt, the costs of which are poorly understood. “But this is not just about people splashing cash they don’t have. A big worry is the proportion of people needing debt just to get by.
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