02/06/2005

Debt not considered a problem by most Britons

The vast majority of people in the UK do not consider their debt repayments to be a problem, a government-commissioned survey has found.

The MORI survey, commissioned by the Department of Trade and Industry (DTI), found that, despite an increase in consumer borrowing in recent years, only 5% of those surveyed considered their household debt repayments to be a problem.

The survey of almost 10,000 people found that those who are struggling with over-indebtness in the UK are typically in their 20s and 30s, have children, are living in rented accomodation and earn less than £9,500 a year.

Nine per cent of those surveyed spent more than half of their income on total credit repayments and eight per cent spent more than a quarter of their income on unsecured credit repayments.

Four per cent of repsondents also admitted to having been in arrears on credit commitments and domestic bills for more than three months. Individuals were found to be the most likely to be behind on domestic bills – council tax was found to be the most common payment for people to fall behind on, closely followed by rent, water and gas/electricity bills.

The survey also found that 19% of people do not pay off the full balance on their credit cards, while 15% used overdrafts, although they tended to owe a lot less on average (£355) than other credit commitments.

Apart from mortgages, the commitments that people owed the most on were car finance, followed by personal loans, government student loans, bank/building society loans, hire purchase and loans from family and friends.

Commenting on the survey, Consumer Minister Gerry Sutcliffe said: “Over-debtness can cause huge problems for individuals, which is why we are currently working hard to minimise the number of people who become over-indebted and improve support for those who have fallen into debt. However, it is encouraging to see that, despite an increase in consumer borrowing, the percentage of those who find their debts unmangeable is still relatively small.”

(KMcA/SP)

Related UK National News Stories
Click here for the latest headlines.

03 October 2013
Emergency Text Service To Be Tested
A pilot scheme of a new emergency text message alert system is underway in Glasgow. From 2pm this afternoon, O2 customers will receive three messages as a test of the system. It is understood that the texts will make clear that it is just a test and that they are part of a trial.
11 October 2011
GPs 'Dig In' Against Reforms As Debate Looms
GPs have continued their opposition of the sweeping reforms to the NHS proposed by the Government as a crucial House of Lords debate on the issue begins on Tuesday morning. A survey published just ahead of the debate found that most GPs think the Health and Social Care Bill should be withdrawn.
05 January 2009
Patients To Have Say On Improving GP Services
More than five million patients in England are being asked for their views on how to improve family doctor services in a new survey launched by the Government today. Results from the national survey will be used to drive changes to GP services and rewards for GPs who provide fast, convenient services.
03 February 2004
Blair confirms inquiry into WMD intelligence
On Sunday, US President George Bush announced the creation of an independent bi-partisan inquiry into intelligence failures over Iraq's, so far, undiscovered WMDs, and today it was Tony Blair's turn to set up a similar inquiry this side of the Atlantic.
03 October 2003
Straw claims WMD report backs case for Iraq war
The Foreign Secretary has claimed that the report into Iraq's weapons programme provides "conclusive and incontrovertible evidence" that Iraq had breached UN resolutions.