Repayments 'eat up 60% of income'

People in debt are spending the majority of their monthly income on repayments, according to a charity.

The Consumer Credit Counselling Service found the average person was spending 58% of their earnings on repaying credit cards, loans and overdrafts each month.

The charity, which was contacted by 418,000 people for help last year, warned that this left people with just under £500 to cover all other costs such as mortgage or rent, bills and food.

The average debt owed was £22,476, with monthly repayments costing £676, the charity said.

Delroy Corinaldi, external affairs director at CCCS, said: "With rising prices continuing to push up the cost of living, household budgets are under increasing pressure, and these figures show how difficult it can be to escape from debt once it builds up.

"Our advice to anyone struggling to cope with their repayments is to seek free advice as early as possible."

Disclaimer

All content is for informational purposes only and is the opinion of the author. Nothing on this website should be interpreted as "advice". Money Dashboard Ltd make no representations as to the accuracy, completeness, suitability or validity of any information on this site and will not be liable for any errors or omissions or any damages arising from its display or use.

Get started today with Money Dashboard

Money Dashboard will help you discover where your money is going, start saving and plan for the future - for free

Related articles

Download app