More than 20 million people are “concerned” about their current level of debt, according to the latest survey of personal debt by R3, the insolvency trade body.
Approximately half of the UK’s adult population are concerned about their levels of debt, up from 42% in February, despite signs of improvement within the economy.
One fifth (21%) of British adults said they are “very” or “extremely” worried about their current debts, up from just 12% in February.
Almost half (42%) said they “struggle” to make it to payday, of whom the majority (67%) blame the rising cost of living for their financial difficulties.
Liz Bingham, R3 president, said: “Although the economy is starting to pick up, many families are finding themselves left behind, weighed down by the cost of the day-to-day.
“Many people are struggling to afford the absolute essentials. It is head to see the situation improving over the rest of the year, especially given the run-up to Christmas.
“There is a sizeable chunk of the population in a very precarious position. These people have no financial buffer to cope with any increase in the cost of living.”
Approximately 12 million people, 27% of British adults, said they currently have no savings, an increase of 4% from 23% in February.
Credit cards (42% of those worried about current debts), mortgage repayments (22%), and overdrafts (20%) are the most common types of debt that worry those with financial concerns.