More Brits are managing to reduce their overall level of debt, new research by MoneySupermarket.com has found. In the last year, the average amount of personal debt, not including mortgages, has gone down by £1,500 to £6,926, after more than a third of people were able to pay off more of what they owe.
Not everybody has managed to pay down their debts: the report also notes that over a quarter of British people who owe money have needed to increase their total amount of borrowing in the past year, and nearly one in four (38 per cent) are concerned about their debt levels. Those who are having difficulties paying their mortgage may consider a fast home sale to free up cash and allow them to move to a more suitable property.
“It’s encouraging to see consumers showing prudence and looking to pay down their debt,” said Tim Moss, head of loans and debt at MoneySupermarket.com. “However, with the economic outlook continuing to remain uncertain, many Brits are feeling very concerned about their current financial situation. Balancing the household budget is hard enough without being saddled with the additional pressure of debt repayments.”