Threshold of serious debt getting higher, says insurer

Covered mag, presented by Gocompare.com
  • | by Kristian Dando
The average Briton now only considers them self to be in serious financial difficulty if they are in over £15,837 of debt, increasing to £16,646 for 18 to 34 year olds, according to insurer Scottish Provident’s Financial Safety Net Report. The over 55s ‘debt threshold' is slightly lower at £14,424. Those living in the West Midlands have the highest regional ‘debt threshold' before being considered in financial difficulty, with an average figure of £17,118, compared to a lower £13,459 in Yorkshire and Humberside. Head of marketing at Scottish Provident, Susan Barclay said: "To not believe they would be in serious financial difficulty before they reached debt levels of over £15,837 is a worry, and it underlines how debt has become too readily accepted in the UK. What starts out as a small level of personal debt can quickly spiral out of control, so Britons should ensure they keep on top of their personal spending.”