Just under half (46 per cent) of adults in the UK are currently in debt and have blamed the rising cost of independent living as the cause, according to The UK Spending Report, commissioned by Creditfix.co.uk.
Those who admitted to being in financial difficulty were found to have an average debt of £6,465 and cited increased household bills (36 per cent) and increased rental or mortgage repayments (33 per cent) as the leading causes.
Experts suggested these increases in housing costs are the result of a growing demand for new property, of which there is a dwindling supply. The Royal Institution of Chartered Surveyors (RICS) predicted the housing crisis will prompt a 15 per cent surge in housing prices over the next five years.
Further to this, Britons listed credit card interest as the third major cause of debt (21 per cent), while fourth on the list was excessive spending on luxury items such as clothes and accessories (19 per cent) and general overspending (16 per cent) was fifth.
Creditfix head of marketing Taylor Flynn said on the findings: “The average British adult owns three credit cards with a total credit limit of approximately £10,000 available to them across these. With so much credit on hand, it's easy to understand how temptation can get the better of people sometimes - but treating ourselves on credit can be a slippery slope.
“The property market is booming at the moment and the costs associated with being a homeowner are continuing to rise, so it’s unsurprising that many people are struggling to keep on top of these costs.
“Credit repayments, excessive spending on clothes and accessories, and general overspending however is a different ballgame. We classify these as non-essential expenses and so it seems that there is some work to be done to educate Brits. Everyone deserves a treat from time to time, but there are ways that people can treat themselves whilst still being savvy with their finances.”
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