More than two-fifths (42%) of Brits polled as part of a recent study by NerdWallet admitted to being in debt.
Behind credit cards (42%) the second most common debt emerged as unsecured loans, with 30% of respondents owing money here, followed by secured loans (29%).
Over one-fifth (21%) of Gen Z’ers (aged 18-24) claimed to have £600 to £700 worth of debt, one in eight (12%) owe £700 to £800, and almost one in six (13%) are already carrying more than £1,000.
While almost one in three (31%) of millennials (25 to 34), stated their debt totals less than £500
Over a third (35%) of those aged 35 to 44 claim they currently owe between £1,000 and £10,000.
Those aged 65 and over are struggling the least with debt, with almost half (49%) owing less than £700.
Almost half (47%) of respondents currently in debt said the cost of living is their biggest worry, while 41% highlighted that energy bills are their main concern.
Brean Horne, personal finance expert at NerdWallet UK, said: “Borrowers who manage their repayments and pay off their debt on time are unlikely to run into any issues.
“However, shoppers purchasing more than they can reasonably afford may be putting themselves at risk, especially as the cost of living continues to rise.”
Horne added: “Customers tempted to use different forms of borrowing should take note of all terms and conditions and make sure they understand how much they’ll be repaying and when.”
