Brits Carefree About Debt Below £10k

Research from moneysupermarket.com has shown that it takes an average debt of nearly £10,000 (except mortgages) before British consumers begin to worry. Known as the “worry tipping point”, this figure makes for troubling reading, especially given the weak state of the economy.

The Northeast of England showed the highest level of worry tipping point at £14,200, and the survey also suggested a gender imbalance, with the tipping points of men averaging £2500 higher than women. The report goes on to indicate that even though worry begins to creep in on average at the level of £9700, those in debt do not generally seek advice until they have significantly exceeded this, at an average level of £19,478.

The head of loans and debt at moneysupermarket.com, Tim Moss, commented: "This debt tipping point research has revealed quite a gloomy outlook for the nation's finances. Recent changes in taxation limits, removal of certain benefits and the soaring cost of living has seen the nation's personal finances squeezed more than ever and many people will be hitting their worry barrier as a result. However, there is no need to suffer in silence and there are many options to make steps in reducing personal debt, before it escalates out of control”

Consumers worried about their level of debt are advised to seek help. The government recently launched the Money Advice Service, an independent organisation dedicated to giving free, impartial money advice to anybody, regardless of their financial situation.