47% of Brits are worried about their debts, according to the latest Personal Debt Snapshot from insolvency trade body R3.
The quarterly tracker of the nation’s finances shows a 7% rise in debt concern, compared to this time last year.
Of those who are concerned about their debts, credit card debt continues to dominate fears for 53% of individuals an increase of 5% on last quarter. Concern about certain types of debt has increased this quarter: Payday or other short term loans (up 2%), hire purchase (up 3%) and store cards (up 1%) while worry about secured lending has reduced such as mortgage repayments (down 4%) and bank loans (down 2%).
Frances Coulson, R3’s president, said: “Households that are already struggling may find traditional lenders unwilling to provide further credit and are therefore drawn to short-term credit solutions. Individuals turning to short-term loans and credit cards should be wary of the high interest rates that often accompany these products. Overall debt can quickly snowball out of control.