Christmas hangover as Brits feel the financial pressure
As the hangovers of Christmas excesses hit, over one fifth of Brits (22 per cent) say they feel most financially under pressure in January, according to research from TDX Group, an Equifax company.
Of all the months in the year, January is the most financially difficult, with 26 per cent of females flagging it as a pressure point, compared to 18 per cent of males. The build up to the big day is also a strain, with 19% of Brits citing December as when they worry most about their personal finances.
Credit cards are the type of debt people are most concerned about (cited by 20 per cent of respondents), followed by utility bills (11 per cent) and mortgage repayments (9 per cent).
The survey, conducted online with Opinium, also revealed that over a fifth of respondents (21 per cent) would find any amount of personal debt unmanageable*. The average amount of debt people consider to be unmanageable is £8,854, almost a third (30 per cent) of the average UK salary**. Men feel more comfortable with a higher level of borrowings, on average stating £9,996 as manageable compared to £7,661 for women. People in the South East believe they can handle the largest amount of personal debt at £10,662.
Meanwhile, almost three in ten people (29 per cent) highlighted that a mortgage of any size would be unmanageable. This was most common in Wales (38 per cent), compared to just 22 per cent in Yorkshire and Humberside.
Richard Haymes, Head of Financial Difficulties at TDX Group, an Equifax company, said:
“Year after year, spending pressures over the seasonal period push many to exceed their financial limits. Record high levels of personal debt in 2018, combined with so many people saying they find debt unmanageable, make this particularly concerning.
“Nonetheless, positive trends are developing. The increasing regulatory focus on expanding awareness and access to debt advice, such as the government consultations on Statutory Debt Repayment Plans and breathing space for people in debt, should help break down the social stigma around financial difficulties and enable more people to access the help they need. This will play a key role in addressing society’s debt problems in the year ahead.”