Personal Debt Snap Shot

R3, one of our recognised professional bodies, recently undertook a survey on personal debt matters.  Here are their key findings:

  • More than 40% of the population is struggling to payday as a result of the rising cost of living and half of the population is worried about their levels of debt.
  • The percentage of British adults who are worried about their levels of debt is at its highest since September 2012.
  • 28% of British adults say they do not have any savings at all at the moment – the highest proportion since September 2012.
  • A quarter of British adults expect their personal finances to worsen in the next six months.
  • Credit card debt is the most common debt concern.
  • British adults are still twice as likely to take out a pay day loan rather than go to a credit union.
  • British adults most likely to have taken out a payday loan in the last six months are aged 25-34 years old.

At Bretts we have seen a recent upturn in enquiries relating to personal insolvency.  Some clients have chosen the path of an Individual Voluntary Arrangement but for many personal bankruptcy has been the solution.  See our quick reference guide to the pros and cons of each.