Nearly 30% cleared all debts over past year

Published on

bankruptcy law

Latest figures from Equifax suggest that consumers are managing their debts despite the cost of living increasing.

The latest Equifax research reveals that nearly 30% of people have no debt on store cards, credit cards, payday loans or other credit agreements payable over 12 months or less.

In addition, over 40% of consumers have the same amount of debt that they did 12 months ago, with over two thirds saying that their disposable income has either increased or stayed the same compared to last year.

Neil Munroe, external affairs director for Equifax, believes these figures demonstrate consumers successfully managing their finances and trying to pay off their debts even though they continue to face quite difficult economic circumstances.

He said: “Conducted ahead of this month’s Budget, our latest research provides insight into the way that people are managing their money and trying to put themselves in the best financial position as possible. It’s not surprising that consumers feel the pinch with daily expenses as the cost of living increases whilst earnings haven’t changed much, but it’s great to see that the increased financial pressure is being coped with well.

“Indeed, with 46% of respondents saying that they put savings away each month from their disposable income there’s a real sense of prudent financial management amongst UK consumers.”

One area of concern, however, that the Equifax figures have highlighted is the fact that nearly half of consumers would stop paying into their pension if their financial situation changed and they needed to make savings. Life insurance cover would also be stopped by over 40% of respondents to the Equifax research, and nearly half would stop paying their home building insurance.

“You can never know when your financial situation will change so it is important for consumers to keep track of their regular outgoings,” said Munroe.

“Consumers should keep a close eye on their finances, including regularly checking their credit report. It is not unusual to receive an unexpected high bill, particularly after the winter months, but having clear sight of your finances will put you in the best possible position to know how you can pay it off and where you could potentially cut back in spending.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Rightmove warns property tax reforms could stall housing market

Rightmove has warned the government that proposed changes to property taxation risk distorting the...

Bradford retains crown as UK’s leading property hotspot

Bradford has once again been named the country’s most in-demand housing market, topping OnTheMarket’s...

Keystone reduces expat buy-to-let rates and adds new product

Keystone Property Finance has reduced rates across its expat buy-to-let range, cutting selected fixed...

Gatehouse cuts buy-to-let rental rates and eases paperwork

Gatehouse Bank has cut rental rates by 0.25% across its buy-to-let purchase plans for...

The Exeter: most consumers value advice when purchasing insurance

Almost two-thirds of consumers prefer to purchase insurance following professional advice, according to new...

Latest publication

Latest opinions

Bridging the Pond: How large is the US bridging finance market, and compared to the UK?

When we first got started with LendInvest in the UK, post the financial crisis,...

Passing the affordability exam

As teachers and students of various ages have spent August nervously opening exam results...

Investors are changing their approach – and lenders should too

The buy-to-let market never stands still, but the pace of change in recent years...

Leasehold fees, specialists and the need to shop around

Leasehold properties account for around 20% of all dwellings in the UK, and while...

Other news

Rightmove warns property tax reforms could stall housing market

Rightmove has warned the government that proposed changes to property taxation risk distorting the...

Bradford retains crown as UK’s leading property hotspot

Bradford has once again been named the country’s most in-demand housing market, topping OnTheMarket’s...

Bridging the Pond: How large is the US bridging finance market, and compared to the UK?

When we first got started with LendInvest in the UK, post the financial crisis,...