14 June 2006
The vast majority of people in the UK are comfortable with the amount of debt they have taken on, according to a new survey.
Credit history firm MyCallCredit found that nine in ten people were comfortable with their level of indebtedness and one in five were planning to reduce their borrowing over the next year.
However, the study also found that young people were the least optimistic about their financial future, whereas part time workers were most likely to be out of their depth financially.
MyCallcredit director Alison Nicholson said: "Debt only becomes a problem for people when they can't manage their repayments and the vast majority can.
"However, there are some people who expect their situation to get worse, one in four people between 16 and 24, and one in seven people who aren't working, expect more of their income to be spent on unsecured debt repayments in a years time."
She said that people should be spending less than a quarter of their income servicing unsecured debt and also said the lending industry had to work in the interests of consumers.
"The industry needs to continue developing more responsible lending practices, like introducing true affordability checks at the time a credit application is made, and individuals need to take stock of their overall financial position to make sure they are applying for credit responsibly," she added.
Compare personal loans and find the best personal loan for you with the uSwitch.com loans comparison service
© 2008 Adfero Ltd
Content for the uSwitch.com market news service is provided by a third party, Adfero Ltd. Whilst uSwitch.com makes reasonable efforts to check the reliability of this content, uSwitch.com does not guarantee the accuracy thereof or endorse the views or opinions given by Adfero Ltd, unless expressly stated otherwise.