More than half of the UK adult population (almost 27 million), will head into 2020 in debt, with almost five million** owing over £10,000 in loans and credit, according to a poll conducted by money.co.uk.
The financial comparison website polled 2,018 people living in the UK, aged 16-64 years, and found that, not including mortgages, almost two thirds (63%) will go into the New Year with some form of personal debt – including money owed on credit cards, personal loans, car loans, bank overdrafts and payday loans.
Of the 42.7million people aged between 16 and 64 in the UK*, 26.9 million people are potentially heading into the New Year in debt, by as much as £100,000.
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The poll also revealed that a third (33%) of respondents have a personal debt between £2,000 and £10,000; that’s nine million people. While, almost a fifth (18%) said their personal debt was above £10,000, which equates to 4.8 million adults in the UK saddled with this level of debt.
More than a quarter (26%) of those polled, from the North West, said they will go into 2020 with a personal debt between £5,000 and £10,000, while more than a fifth (21%) of respondents from Wales said 2020 will kick off with debts between £10,000 and £50,000.
Meanwhile, almost half of Scots (45%) won’t enter the New Year with any debt. This compares to just 30% of Londoners being debt-free at the start of 2020.
Types of personal debt
More than a third (38%) of those polled said they have credit card debt, 19% personal loan, 19% bank overdraft, 12% car loan and 6% payday loan.
The average credit card debt of those polled is £2,966, with men (£3,138) owing over £300 more than women (£2,793). Respondents aged between 35 and 44 years have an average debt of £4,076 vs £1,784 for 16-24 year olds.
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Half (50%) of 35 to 44-year-olds owe money on plastic, compared to just over one in five (23%) 16 to 24-year-olds.
Almost three quarters quarter (74%) of those polled with credit cards said they do not pay off the full balance every month, while a fifth (22%) make the minimum payment or less.
Causes of debt
Asked what their debt was due to, four-in-ten (40%) stated normal living expenses, 21% said debt consolidation, 19% attributed their debt to holidays, 18% towards paying for Christmas, 18% due to spending on luxury items, 12% paying off debt accrued from previous Christmas spending and 10% on helping others out of debt.
