Ahead of UK Savings Week, new PayPlan analysis reveals that nearly seven in ten people seeking its help are in full-time work – yet are carrying more than 10 unsecured debts each and have almost nothing left at the end of the month

14 September, London – New analysis from PayPlan, one of the UK’s largest debt advice providers, has found that the average person seeking debt advice in 2026 is juggling 10 separate unsecured debts (such as credit cards, personal loans and overdrafts) totalling £22,717 – and is left with just £194 a month once essential living costs are met.

The findings, drawn from 24,406 people advised by PayPlan recorded between January and September 2026, challenge the assumption that problem debt is driven by people being out of work. Almost seven in ten (69%) of PayPlan’s customers are in full-time employment, with a further 19% working part-time – meaning nearly nine in ten are in work. The vast majority (88%) are PAYE employees.

Their average gross income is £24,246, meaning many are earning close to, but still below, the annual equivalent of both the UK real Living Wage (£26,228) and the London Living Wage (£28,860). Therefore, with an average monthly surplus of £202, many people in the UK have little realistic capacity to save. Almost one in five customers (17%) have £50 or less left each month, including 11% whose outgoings already exceed their income.

The data also point to a squeezed-middle generation. Millennials make up 49% of everyone PayPlan has advised this year – close to half – and the average age at referral is 40.7. More than half (55%) rent, and 28% own their homes. The cohort typically expected to be building a deposit or topping up a pension is instead, on average, £22,717 in the red.

Nor is problem debt confined to large households. Almost half (46%) of customers are single, and 51% have no children under 18, underlining that a single income and a single set of bills offer no protection.

The most cited reason for falling into debt is the increased cost of living (27%), followed by a reduction in income (17%), illness or injury (13%) and separation or divorce (11%) – pointing to income shocks and rising bills rather than overspending as the dominant drivers.

Research commissioned by the Building Societies Association for UK Savings Week 2025 found that households with £2,000 in savings have around 60% lower odds of falling behind on bills, and that households which save consistently – whatever the amount – have over 70% lower odds than non-savers. Even £200 to £499 set aside makes a measurable difference.

Rachel Duffey, CEO at PayPlan, said:
“There is still a stubborn myth that problem debt happens to people who don’t work or don’t budget. Our data says the opposite. The typical person coming to us this year is 40, in a full-time PAYE job, renting, and left with £194 at the end of the month. They are not overspending – they have been overtaken by the cost of living, a drop in income or an illness they didn’t plan for.

“What that leaves is a generation locked out of saving entirely. Without a buffer, a broken boiler or a car repair becomes credit, and credit becomes the next debt. The evidence is clear that even modest savings dramatically reduce the risk of falling behind, so the answer isn’t to tell people to save more – it’s to make saving something small, automatic and achievable.”

PayPlan’s tips for starting a savings habit on a tight budget:

  • Priority bills come first. Rent, mortgage, council tax and energy always come before saving. If you are behind on any of them, get free debt advice before you put money aside.
  • Start at £5 a week if possible. That’s £260 over a year – enough to cover a school trip, an excess on a car repair or a replacement washing machine deposit.
  • Automate it. Set a standing order for the day after payday so the money moves before it can be spent.
  • Keep it out of reach. A separate account with no card attached makes a small pot far more likely to survive the month.
  • Ask about a credit union. Many offer payroll or benefit-linked saving alongside affordable borrowing.

 

Anyone worried about debt can get free, confidential and FCA-regulated advice from PayPlan. Visit payplan.com to get advice online or request a call back, or call freephone 0800 280 2816 (Monday to Friday 8am–8pm, Saturday 9am–3pm). Getting advice is free, has no impact on your credit score, and there is no obligation to take up a solution.

*PayPlan’s advice is free, but some solutions may involve fees. 

ENDS

Notes to Editors

All PayPlan figures are taken from PayPlan’s Customer Demographic Profile Pack, based on 24,406 debt advice sessions recorded between January and September 2026 and extracted on 09 September 2026. The population is year-to-date advice sessions rather than PayPlan’s full customer base, so the figures describe people who approached PayPlan for advice during 2026 rather than everyone PayPlan supports. Employment status, income and demographic percentages are calculated across those records where the relevant information is held.

About PayPlan

Since its creation in 1992, PayPlan has helped over one million people to become debt-free and today helps over 180,000 people annually across the UK take control of their finances and live life free from debt.

Debt is one of the most common human experiences and one of the least talked about. PayPlan’s mission is to help people become debt-free and stay debt-free thought clear, honest advice and debt solutions that work.

As one of the UK’s largest debt advice providers, PayPlan offers confidential, FCA-regulated advice and a wide range of debt solutions, tailored to each individual’s circumstances. With a focus on compassion, accessibility and long-term support, PayPlan helps people find a clear way forward – whether that’s through a formal or informal managed plan, budgeting advice or general money guidance.