One in 10 worried about mortgage repayments
The survey found that almost half (42%) of UK adults are concerned about debt.
Of those surveyed nearly a third (32%) said money owed on credit and store cards causes them most concern, 14% said their biggest debt stress came from their overdraft, 12% report mortgage repayments and 9% said bank loans.
Nick Pearson of Baines & Ernst said: “While it’s clear that wages are failing to stay in line with the rate of inflation, it’s still quite worrying to see so many people turning to additional forms of credit to help them survive.
“Funding essential living costs on a credit card may be convenient in the short term, but if you cannot afford to repay your credit cards in full every month, you could be subjected to charges and APR rates that could lead to bigger debt problems later down the line.”
The survey also revealed that 38% of people blame the rising cost of living for driving them into debt, 15% say it is loss of employment and 13% admit that it is non-essential spending on leisure activities and luxuries. Relationship breakdowns also account for 9% of debt problems.
The research revealed that twice as many men than women are worried about bank loans and a quarter of under 25s feel anxious about credit card debt. Wage freezes have caused most financial hardship, according to 12% of those surveyed.
Pearson added: “One of the most startling statistics from the survey is that out of 1,824 people polled, 20% of people felt gloomy about their financial situation improving in the next 6 months.
“This would suggest that people are struggling to get out of debt. The best thing to do is to take a fresh look at your finances and see where savings can be made; where budgets can be introduced and create a repayment plan you can stick to.
“Alternatively, if you think your troubles run deeper than a simple restructure of your finances, then you could seek help from a professional debt solutions company.
“A lot of people feel like they have to struggle alone, but it’s important to remember that whatever your financial circumstances, there are professionals out there who can support you during this time and help you find an affordable way to get out of debt.”