Debt Management News
One in Ten living beyond their means

29th February 2008

A new study has shown, that in the past six months around five million people have missed monthly payments on credit cards.

Uswitch research found that a further 20% have no spare cash left at the end of the month while the average person has over £150 left in their bank account after bills have been paid.

Around half of those spending more than their income are relying on overdrafts on their accounts and credit cards.

Uswitch said average debt repayments rocketed from £174 to £356 in 10 the last 10 years – a rise of over 100%. In addition, the amount of credit cards issued has almost doubled from 36 million to 71 million.

Many reports published last year said increased debts could result in a record number of people turning to insolvency this year.

The research found that spending on luxury, non-essential items has increased 65% from 1997, outpacing growth in both average net earnings, and essential living costs, which rose by 48% and 43% over the same period.

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