The average person in the UK will owe 2% more in debt than what they earn in a year, according to new figures by Confused.com. Their research shows that, on average, for every £1 which is earned through income, £1.02 will be owed to creditors.
Manchester saw one of the lowest debt-to-salary ratios, with 51% of money earned was owed to creditors. This figure shades into comparison to those living in Kingston-Upon-Thames whose debts are worth 169% of their yearly wage, and have thus been given the title of ‘debt dependents’.
Gemma Stanbury, head of savings, loans and debt at the site, said: “Homeowners who have several credit cards, hire purchase agreements and personal unsecured loans, could consider consolidating these with a secured loan. One of many options to consolidate debt, a secured loan could result in one monthly repayment rather than several repayments. It should however be remembered when taking out a secured loan to consolidate debt, that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debt.”