Brits try to ditch the debt

More people are clearing mortgage debt than are increasing it, according to new research from moneysupermarket.com.

40% of UK adults have reduced their outstanding borrowings, with 16% claiming to be ‘in a lot less debt now compared to one year ago’.

However, more than a quarter (27%) of British adults have taken on more debt, with 8% reporting that their debt has increased ‘a lot’ over the past 12 months. Of those still in debt, 14% believe debt will always be a part of their life.

The report, which questioned 1,954 respondents, also found that Brits are still carrying around a large chunk of unsecured debt. In fact, more than half of the UK’s adult population has an average of £6,956 of non-mortgage debt.

Tim Moss, head of loans and debt at moneysupermarket.com, said:

“Overall, this is positive news. It is encouraging to see that a good number of us are taking active steps to reduce the amount we owe. We have, over a long period of time, become too reliant on too much debt and correcting this was never likely to be an easy process.”

“For those who have seen significant increases in their indebtedness over the last year, I would strongly encourage them to go through their household budget ruthlessly, line by line, and identify where outgoings can be cut. “

“Anyone starting to worry about their financial situation shouldn’t bury their head in the quick sand of debt – problems are easier to tackle when addressed early; those in their twenties and thirties should get into the habit of addressing their finances now to avoid financial difficulties later in life.”

If you are struggling to meet your debt repayments, TotallyMoney.com can help. Just visit http://www.totallymoney.com/debt/ and enter your details to receive a tailored report on all of the debt solutions available to you. You will also have the opportunity to speak with an expert adviser who can help get you gain control over your finances.