9 million households expect more debts

Nine million households believe their debts will increase despite recent economic figures indicating things are improving.

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Despite Chancellor's Budget 'money is still tight'

We heard in the Chancellor's Budget that the economy is picking up but for many individuals the reality is very different. Money is still extremely tight and it will take much longer for them to feel like they've finally got a hold of their finances.

Those relying on credit of some kind to pay their way need to start doing all they can to break that habit and get themselves into the black. It is encouraging to see that some people have recognised this and are seriously committed to clearing their debt, and using cost saving measures to do this. Debt needs to be tackled head on; simply working out a realistic monthly budget and cutting out unnecessary expenditure should be the first step.

– Kevin Mountford, head of banking at moneysupermarket.com

Almost a third will go further into the red this year

A survey has found that people who are already in debt expect to turn to more borrowing to make through the year. The MoneySuperMarket poll found that:

  • Of those with existing unsecured borrowing such as credit cards, overdrafts or loans, 30% will move even further into the red to cope this year
  • 6% of those in debt expect to have to spend more simply to cover their essential monthly outgoings
  • Almost one in ten (8%) will pay for their transport costs on plastic
  • 6% will use credit cards to cover their utility bills

Where possible however, some people are taking necessary action to attempt to pay off their debts, with almost a third (30%) paying what they can each month to try and clear the deficit as quickly as possible.

Opinium research conducted 2,002 online interviews between 21st - 24th January.

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Nine million households expects debts to increase

Nine million households expects debts to increase Credit: Dominic Lipinski/PA Wire

Nine million households believe their debts will increase despite recent economic figures indicating things are improving.

Research by MoneySuperMarket has shown that two-fifths of UK adults in debt rely on unsecured credit in order to pay their way day-to-day and one in ten use credit to fund transport costs.

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