MANCHESTER, England, September 3, 2014 /PRNewswire/ --
- A snap shot of how personal debt is affecting people in 2014, compared to 2013 statistics
The Infographic illustrated several key areas of concern for people in the UK, including debts that caused the most worry and factors that contributed to debt problems.
Has the financial outlook for people in the UK changed in 2014?
"Whilst the economy may be moving in the right direction, we know people are still struggling to keep up with debt repayments as the cost of living continues to rise," says Shaz Sulaman, Joint Managing Director at Baines & Ernst.
Using the statistics released by ComRes in their publications: "R3 - Personal Debt Snapshot - Wave 13", Baines & Ernst has created a brand new Infographic "Personal Debt in the UK 2014". The information was gathered from interviews with 2,013 GB adults and showed that 51% of people were worried about debt in some way; this is up 21% compared to the previous year. So what factors are driving people into debt?
Reliance on credit grows
865 people answered multiple choice questions relation to why they felt like they were struggling. 59% of people said rising food costs; 52% said rising energy prices and 38% said rising transport costs.
Reliance on credit has grown significantly since last year. 1,030 polled said they were worried about credit card debt at 43%; overdraft debt at 22% and bank loans at 17%.
Perhaps the most startling insight is that out of 1,030 people polled, 9% admitted that they were worried about payday loan debts - this is up 200% compared to last year.
Statistics released by Money Charity show that outstanding personal debt in the UK stood at £160 billion at the end of April 2014; this is up from £156 billion compared to 2013.
"Turning to credit in order to write off existing debts could lead to further financial problems in the future.
"25% of those polled expected their financial situation will worsen in the next six months, if you cannot afford to repay your credit card or store cards in full every month and continue to spend, your situation can easily spiral out of control. There are many debt help solutions available, from budgeting advice to debt repayment plans that make getting out of debt more affordable, so we would urge those who are worried to seek help as soon as possible," says Shaz Sulaman, Managing Director at Baines & Ernst.
SOURCE Baines & Ernst