More than a third of Brits have reduced their debt levels over the last year, but worries remain in many households.
Research from MoneySupermarket.com has revealed that average UK personal debt (not including mortgage owings) now stands at £6,926, down from the £8,431 recorded this time last year.
In total, 35 per cent of Brits have reduced their debt levels in the last 12 months, However, 27 per cent have actually increased their non-mortgage borrowing, while 38 per cent remain concerned about the debts they hold.
Tim Moss, head of loans and debt at MoneySupermarket.com, says that the reduction in personal debt levels overall is very pleasing, but with economic growth uncertain, concerns are likely to remain for some time to come.
“Balancing the household budget is hard enough without being saddled with the additional pressure of debt repayments. However, there is no need to suffer in silence and there are many options to make steps to reduce personal debt, before it escalates out of control,” he said.
Those burdened by heavy debts may find that a quick home sale could ease the financial pressure.