In Focus Consumer Credit
A fuller picture
Personal-debt worries continue to show serious causes for concern
Caroline Sumner Technical and education director, R3
caroline.sumner @
r3.org.uk
Two in five (40%) British adults are at least fairly worried about their current level of debt, while the same proportion (40%) say they sometimes or often struggle to make it to payday, according to our new research. The figures, from the latest in the long-
running R3/ComRes survey of over 2,000 British adults’ personal debt concerns, give an insight into the current position of the country’s personal finances. The survey found concerns expressed
were credit-card debt, worries felt by those renting, and increasing problems with basics like the cost of food.
Debt worries l 40% of British adults say they are at least fairly worried about their current level of debt – an increase on the previous two surveys: 37% in October 2018 and 34% in April 2018. l As many as 57% of adults aged 25 to 34 are at least fairly worried about their current level of debt – more than any other age group. The lowest are the over-65s, at 15%.
Survey
March 2019 October 2018 April 2018 August 2017 February 2017 September 2016 June 2016
January 2016 August 2015 March 2015
November 2014 July 2014
22
21% of British adults think their personal financial situation will improve in the next six months (unchanged from October 2018), which is still higher than the 17% who think their personal finance situation will get worse in the next six months (similar to 16% in October 2018)
Percentage of British adults who say they often or sometimes struggle to payday 40% 37% 34% 40% 40% 38% 39% 36% 38% 41% 40% 39%
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l Renters (53%) are significantly more likely to be at least fairly worried about their current level of debt than home-owners (33%). l Credit-card debt remains by far the most frequently reported cause for concern among British adults who say they are at least fairly worried about their current level of debt, with half (48%) saying it worries them. This is unchanged from October 2018, and similar to the 49% from April 2018. l Credit-card worries are followed by worries about overdrafts (18% – similar to 17% in October 2018), mortgage repayments (16% – similar to 15% in October 2018), bank loans (16% – similar to 18% in October 2018), and student loans (13% – similar to 12% in October 2018) – again amongst British adults who are worried about their current level of debt.
Missed payments and falling optimism l 22% of British adults say they do not have any savings at all at the moment, compared to 21% in October 2018 and 19% in April 2018. l 37% of renters say they do not have any savings at all at the moment, which is up from 35% in October 2018, and compares to 14% of homeowners, which is unchanged from October 2018. l 21% of British adults think their personal financial situation will improve in the next six months (unchanged from October 2018), which is still higher than the 17% who think their personal finance situation will get worse in the next six months (similar to 16% in October 2018). l Younger British adults are most optimistic about their personal finances – 31% of 18-
May 2019
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