The debt management company found almost half of the UK population are “walking a tightrope of debt”, just a step away from losing their footing and falling behind on their repayments.
PayPlan said the respondents to its survey are dedicating hundreds of pounds a month to debt repayments, spending a third of their disposable income to try and stay in control, but living with the fear that bills are creeping up at a faster rate than wages.
The survey questioned 2,000 people across the UK and revealed over half of the respondents felt worse off than they did five years ago, with average debts reaching just over £2,500.
Other key findings are that 77% feel the cost of living will increase at a higher rate than their wages over the next 12 months and the hike in energy bills has caused people the most financial difficulty in the last five years, followed by petrol and grocery costs.
A quarter of people who responded to the survey have struggled to afford food.
John Fairhurst, managing director at PayPlan said: “These results highlight the increasing difficulty many people face when trying to juggle their debt repayments.
“If they were to find themselves having to pay an unexpected bill, something would have to be sacrificed to accommodate this, leaving them with even more problems.
“Add to this stressful situation, the feeling of isolation as many people don’t want to admit to those closest to them that they are having financial difficulties.”
“By offering practical ways to help people get their finances under control, we can help them deal with their situation to start to live again. We believe that you can, and should, live a happy life while repaying your debt.”
[Source: http://www.credittoday.co.uk/article/17151/online-news/almost-half-of-brits-walking-the-tightrope-of-debt ]
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