Debt problems 'threshold' high

People getting themselves into debt problems in Britain today may not even be worried about their circumstances when levels of debt begin to mount up.

According to the Financial Safety Net report from Scottish Provident, the typical UK borrower only begins to worry about his or her debt problems when their debts exceed a figure of £15,837.

Scottish Provident says the "debt threshold" for younger consumers is set at an even higher rate of £16,646. The average for over-55s meanwhile, came in at £14,424.

There are some parts of the country which research shows the tipping point for worries over debt problems is more than £17,000.

Scottish Provident finds its debtors living in the West Midlands who have the highest tolerance of debt problems.

The firm says people carrying debt who live in this region only think themselves to be in dire financial straits when they owe £17,118.

This figure is in stark contrast to people from Yorkshire and Humberside, who begin to express debt worries when they owe a figure of £13,459.

A statement by Scottish Provident says: "It is clear that the nation as a whole is worryingly immune to the financial reality of being so heavily in debt."

Debt expert from Atlantic Financial Management, Kevin Still says, "Credit Actions January 2011 statistics show that the average unsecured debt per UK household using credit is £16,336, which has been gradually reducing through the recession.

Unfortunately we routinely see people with unmanageable debts with balances of over £30,000 with 8 or more creditors.

Getting into a debt spiral can happen very quickly if you don't monitor the situation carefully or take professional debt advice."

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