UK hooked on credit with millions trapped in spiral of debt
A recent survey by 118118 Money [https://www.118118money.com] reveals that the UK is gripped by credit fever; even those climbing the career ladder and earning more, are finding that debt is a major issue. People earning between GBP20,000 and GBP30,000 a year have more credit card debt, car finance debt and loans than people on an annual income of between GBP10,000 and GBP20,000, according to the results.
The survey findings show those aged 35-54 who are at the peak of their career are 29% more likely than those aged 18-34 to have credit card debt. Those nearing retirement age are virtually debt-free, which could be attributed to them growing up at a time when it was normal practice to save up money before purchasing, rather than take out credit and worry about the consequences later.
Earnings vs. Debt
Interestingly, those earning between GBP20,000 and GBP30,000 per year are 20% more likely to have loans than those on lower wages. When asked what the majority of their salary goes towards, they were 41% more likely than those with a salary of up to GBP20,000 to agree that most of their wage goes towards mortgage/rent. One reason for this could be that they have taken out a larger mortgage or are renting a property which is bigger or in a more affluent area.
The North/South Divide
When it comes to regional differences, those in the North are 25% more likely to have loans than those living in the South. They are also more likely to have mortgage, car finance or catalogue debt. However, they are also more likely to seek debt advice: 17% of those living in the North have received advice on how to deal with debts compared to 13% of those in the South.