For 21% of people, their debt repayments account for 11-20% of their salary
The research has found that nearly 20% of Brits have taken out a credit card to cover the personal cost of the COVID-19 pandemic. Meanwhile, 12% say they have taken out more than one additional card.
According to data, people living in Northern Ireland have the most credit card debt (£8,323) whilst those in the south-west have the least (£1,473).
However, UK adults have reduced the amount of debt on their credit cards by an average of £500 compared to 2019.
Some 15% of people say they have personal loans (down over 3% from 2019), 14% have overdraft debt (down 4% from 2019). Just more than 11% have car loans and over 15% have payment plan loans for home goods or white goods. A further 7% have store cards and 6% have payday loans to repay.
In terms of repaying, the average time needed to pay off debts is almost 3 years (2.9). Although, 27% of the respondents say it will take between 1 and 2 years to pay off their debt. At the same time, 15% say they can pay it off in less than a year. Those in Wales will take the longest to repay their debut – an average of 3.3 years.
We’ve reported that household savings have declined due to the coronavirus pandemic in India.