As the recession continues, new figures from Confused.com highlight the levels of debt British homes are exposed to, as people owe more than they earn in a year. Research from the comparison website identifies which region claims the dubious title of &39;debt dependents&39; where residents owe significantly more than they bring home.
I.O.U&39;s
Today&39;s study from Confused.com identifies the nation&39;s debt demons in the midst of the worst recession since World War Two. The study provides a snapshot of average debt per person, compared with the average salary and goes on to identify which areas (out of the 137 investigated) owe more than they are earning in a year. Figures also highlight the average outstanding balances on credit cards, mortgages, loans and hire purchases from area to area.
Residents of the leafy and affluent suburb of Kingston-Upon-Thames are the Nation&39;s most indebted with the average owing 169% of their yearly earnings. In comparison, frugal Mancunian&39;s do a far better job in money management, with the average owing 51% of their annual salary as outstanding debt.
Plastic Fantastic
The UK&39;s lending responsibilities (including credit card and mortgages) differ from one area to the other. Residents in Surrey&39;s Camberley are the most happy in spending on the plastic with the average person owing &163;2,000+ on their flexible friend. Spenders in Dumfries however take a far more sensible approach to plastic fantastic with the average person having less than &163;750 outstanding on a credit card.
As credit becomes less readily available, residents of Chester-le-street are left with debts from previous credit, owing a whopping &163;3,340 for hire purchases and loans.
Gemma Stanbury, head of savings, loans and debt at Confused.com said: &39;This study provides a significant insight into the lending responsibilities and borrowing commitments of people in the UK. As we face continued uncertainty and increased financial pressures, it is good advice for all to become more aware of what they are spending and on what. Where spend and debt can be reduced, efforts should be made to ensure it is done.&39;
Switch and Save
Switching could literally save you hundreds of pounds. Typical &39;revert to&39; rates on credit cards are around 16%, meaning that a typical resident from Camberley could be paying over &163;320 in interest alone every year. By simply switching to a 0% balance transfer card you could pay no interest, giving you the chance to repay some or all of your outstanding debt.
Stanbury continued: &39;If debt problems are spiralling, debt management programmes are available which will allow consolidation of your debts, requiring a fixed monthly payment. Confused.com&39;s dedicated debt management service can liaise with your creditors and come to an arrangement that is agreed by both parties, and gets you on track to get out of debt.&39;
For further information please contact:
Press Office, Confused.com: 02920 434 398
Gemma Stanbury, Confused.com: 07725 499 058
Notes to editors
About Confused.com:
Confused.com is one of the UK&39;s biggest and most popular price comparison services. Launched in 2002, it generates over one million quotes per month. It has expanded its range of comparison products over the last couple of years to include car insurance, home insurance, travel insurance, pet insurance, van insurance, motorbike insurance, breakdown cover and energy, as well as financial services products including credit cards, loans, mortgages and life insurance.
Confused.com is not a supplier, insurance company or broker. It provides a free, objective and unbiased comparison service. By using cutting-edge technology, it has developed a series of intelligent web-based solutions that evaluate a number of risk factors to help customers with their decision-making, subsequently finding them great deals on a wide-range of insurance products, financial services, utilities and more. Confused.com&39;s service is based on the most up-to-date information provided by UK suppliers and industry regulators.
Confused.com is owned by the Admiral Group plc. Admiral listed on the London Stock Exchange in September 2004. Confused.com is regulated by the FSA.
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