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Debtors 'spend 60% on repayments'

The typical person struggling with debt spends nearly 60% of their income on repayments each month, a charity has said.

The Consumer Credit Counselling Service (CCCS) said the average person who contacted it for help last year owed £22,476 on credit cards, loans and overdrafts, with monthly minimum repayments totalling £676.

The group, which was contacted by 418,000 people last year, said repayments accounted for an average of 58% of clients' monthly income, leaving the typical person with just £498 to pay all of their other outgoings, including the mortgage or rent, bills, food and transport costs.

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."


From Belfast Telegraph