13 March 2008
Credit cards and other forms of debt are making 58% of British adults financially overweight or obese, according to a new report.
Lloyds TSB's Bank Mass Index has calculated that 46% of UK adults are "financially overweight", as their credit cards and other forms of debt are much greater than their savings levels.
Another 12% were deemed to be "financially obese", as they rely too heavily on credit cards and other forms of loans.
These adults typically spend more than a quarter of their gross monthly income on repaying their unsecured borrowings, Lloyds TSB claimed.
Ian Larkin, Lloyds TSB's managing director of consumer banking, said people seemingly take their financial fitness less seriously than their physical health.
"Often people have misapprehensions about the real state of their money," he commented, adding that people should prioritise their financial health.
Among the financial health tips offered by the banking provider is setting a budget and prioritising debt repayments, with high-interest credit cards or store cards paid off first.
According to Credit Action statistics, the average UK adult owes £29,747 in credit cards, mortgages and other forms of debt.
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