The economy is slow to recover from recession and as people continue to struggle with the rising cost of living, almost half of UK adults polled in a recent survey say that they are still worried about debt.
The study from Baines & Ernst, Personal Debt in the UK, based on research carried out by ComRes, reveals that 42% of adults in the UK have financial anxieties.
Of those surveyed, 32% say money owed on credit and store cards causes them most concern, 14% say their biggest debt stress came from their overdraft, 12% report mortgage repayments and 9% say bank loans.
Nick Pearson from Baines & Ernst, said: “While it’s clear that wages are failing to stay in line with the rate of inflation, it’s still quite worrying to see so many people turning to additional forms of credit to help them survive.
“Funding essential living costs on a credit card may be convenient in the short term, but if you cannot afford to repay your credit cards in full every month, you could be subjected to charges and APR rates that could lead to bigger debt problems later down the line.”
The Infographic also shows that 38% of people blame the rising cost of living for driving them into debt, 15% say it is loss of employment and 13% admit that it is non-essential spending on leisure activities and luxuries. Relationship breakdowns also account for 9% of debt problems.
The research reveals that twice as many men than women are worried about bank loans and a quarter of under 25s feel anxious about credit card debt. Wage freezes have caused most financial hardship, according to 12% of those surveyed.
Pearson added: “One of the most startling statistics from the survey is that out of 1,824 people polled, 20% of people felt gloomy about their financial situation improving in the next six months.”
