Home Business News Brits say credit card debt is their main money problem

Brits say credit card debt is their main money problem

by LLB Finance Reporter
27th Jun 23 12:20 pm

New research has revealed that worryingly one in ten Brits (11%) are currently accumulating an extra £500 worth of debt every month, prompting credit management company Lowell to conduct a nationwide survey to see the main causes of debt for each age group and family member.

From misunderstanding financial terms, to credit card debt, poor money management, student debt and more, different generations are experiencing the financial strain, and Lowell has also found out the extra measures people are going to for further financial support.

Over a third (36%) of 18–24-year-olds claim that their main cause of debt is poor money management, whereas the 65+ age group blame the cost-of-living crisis for their money problems (16%).

Misunderstanding financial terms is one of the key money issues for younger people (14%), whereas credit cards are an issue for 25–34-year-olds (25%). The costs involved with having children is a main cause of debt for one in ten (11%) 35-44-year-olds, whilst a low income is the main cause for debt for 17% of 45-54-year-olds.

More than a third of Brits (37%) are dipping into their savings to ensure their family is financially supported this year.

Almost a quarter (22%) of Brits are accumulating further debt and credit by extending overdrafts, while 17% are taking out loans and a further 8% are relying on government funding.

To make ends meet, 26% of Brits are now selling on second-hand sites such as eBay and Vinted, whilst 20% have even taken up an extra job to make ends meet.

John Pears, UK Managing Director of Lowell UK said, “As the cost-of-living crisis continues to have a huge impact on many households, and in such an intense financial period, we want to ensure that people know where to find financial guidance and how to live money-consciously, and educate other members of their family on how to do so too.

“Our report shows that beyond the cost-of-living crisis for many generations of the family credit cards, poor money management and misunderstanding financial terms are their main causes of money problems.

“These financial issues can often be reduced by education and communication, so we hope our research inspires people to talk about their finances, and start to take control of key areas that are impacting their money the most.”

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